18-May-2015 7:31 AM IST
CMP 59.82
As per my analysis, we have completed wave 4 from the bigger picture. Now, as long as crude resisted by 61.83/62.57, I expect to see lower levels in crude.
Trade Idea:
One can Sell Crude below 58.1 or at cmp 59.84 or betweeen 60.1-61.1 with SL 61.9/62.6(max).
Targets: 57.8, 57.4, 55.5, 53, 51, 47, 45.5.
Best Sell Entry: 60.8-61.1
Other targets: 45.2, 37.9, 33.2, 30.2, 22.5
Ref: http://rajmarketresearchanalysis.blogspot.in/2015/05/nymex-crude-chart-for-ideas-15-may-2015.html
As of now, I could see 3-3 moves. So, as per my view, most likely, we may end this down move in a ending diagonal. But let us wait and watch how the market progresses.
This view is invalid Above 62.6. We may see another up move above 62.6, targeting 65, 68, 71.
Read Disclaimer before Taking decision.
As long as 61.83/62.57 resists, I expect to see
57.82, 57.57, 56.32, 55.41, 54.90, 54.67, 52.90, 52.50, 51.93, 51, 50.35, 50.13, 48.35, 47.21, 46.77, 42.42...
CMP 59.82
Trade Idea:
One can Sell Crude below 58.1 or at cmp 59.84 or betweeen 60.1-61.1 with SL 61.9/62.6(max).
Targets: 57.8, 57.4, 55.5, 53, 51, 47, 45.5.
Best Sell Entry: 60.8-61.1
Other targets: 45.2, 37.9, 33.2, 30.2, 22.5
Ref: http://rajmarketresearchanalysis.blogspot.in/2015/05/nymex-crude-chart-for-ideas-15-may-2015.html
As of now, I could see 3-3 moves. So, as per my view, most likely, we may end this down move in a ending diagonal. But let us wait and watch how the market progresses.
This view is invalid Above 62.6. We may see another up move above 62.6, targeting 65, 68, 71.
Read Disclaimer before Taking decision.
Elliott Wave Points to be considered:
Notes from “Elliott Wave Principle” by Frost & Prechter – 10th Ed. (2005)
- 1. If wave 3 is extended waves 1 and 5 tend toward equality, or a .618 relationship is next most likely.
- 2. Extension: in impulses, usually just one of waves 1, 3 or 5 extend. Wave 3 is the most likely to extend. Rarely, both 3 and 5 extend. Extensions can occur within extensions. For instance 3 of 3. Sometimes, at the end of an impulse in which one of the waves extended, there are 9 total waves, and it is difficult to determine which wave extended. There also can be extensions within extensions. 5 in extension manifests itself as 9, 13, 17, etc. 3 in extension can appear as a 7, 11, 15, etc. If neither wave 1 or 3 is extended, expect wave 5 to extend, especially if volume is greater in the 5th than the 3rd.
- 3. Wave 5 = to wave 1, or .618 or .382 x the net of waves 1 thru 3.
- 4. Truncation: when the 5th wave does not reach beyond the 3rd wave. Occurs most often after a particularly strong 3rd wave. The wave 5 must still contain the necessary 5 subwaves. The message truncations send is that there is tremendous pressure to start the new trend. Expect big moves after truncations.
- 5. An ending contracting diagonal appears at the termination point of larger movements, most often as wave 5, and rarely as wave C. An expanding diagonal has only occurred only once in the stock market. Wave 5 often over-shoots, and upon rare occasion, falls short of its resistance trendline. If it does fall short, the reversal will be more severe. Ending diagonal triangles indicate exhaustion of a larger pattern that moved too far too fast. Ending diagonals are usually followed by a quick thrust which retraces to the starting level of the diagonal.
Update: 21-May-2015
As long as 61.83/62.57 resists, I expect to see
57.82, 57.57, 56.32, 55.41, 54.90, 54.67, 52.90, 52.50, 51.93, 51, 50.35, 50.13, 48.35, 47.21, 46.77, 42.42...
