Crude nearing solid resistance, chance to go short

17/07/2016

chart 1

chart 2 

chart 3 

Channels 

As seen in chart no 1 & 2, crude price broke channel support line 25 days ago. It also broke sub channel downward. This channel is nearly 5 month old.

Declining Triangle

After that price moves in a declining triangle till 20 days and broke the triangle 6 days ago. After moving below the declining triangle support line, price moves between Rs 3000 - 3120 range. In last 6 days price attempted 3 times to move upward but in vain. Once it touch 3146 mark as spike high but return back. You can search google for the declining triangle characters and to see, " what will happen after ending of such pattern ?"

Turkish problem - chart 2 

In chart no 2, which is nymex chart, you can see higher size candle than placed in mcx price chart. It is because turkey problem, which is now resolved. 

Moving Averages 

10 dma & 20 dma crossed 50 dma downwards, which shows bearishness in price movement. I always use moving average because it gives clear indications of the trend. 

Hourly chart 

On hourly chart, we can easily see that Rs 3146 is solid resistance. This is very safe resistance as it is spike high and not a normal high. Again the channel resistance line is placed @ 3146 which gives bears exact sl price. In any way price should not cross Rs 3146 level.

Strategy 

Use each & every rally to go short keeping sl above Rs 3146 for the tgt of  Rs 2900 mcx. Wish you happy & safe trading, thank you.