crude done the 78 % retracement of prior fall from 7800 to 2634 @ 2768

Crude 78% retracement of prior fall done

 As  seen in the chart, crude done its 78 % retracement of prior fall from 7800 to 2634 @ 2768 today. Now it should travel again towards 2450 which is final tgt of downmove.

If it will go above 2770 in good way and sustain then, crue will turn bullish.

Update 5th Aug 2016, 07.07 Pm

crude hourly chart 

As said in the original post , crude went above 2770 and sustain in good way near 2800 mark. It turns bullish for short term now, but it should cross 2817 mark, if failed to do so, there will be double top formation. This attached hourly chart shows us fibonacci retracement of fall from 3120 to 2640. Now we cant think about 7800 to 2634 fall because price move above 78% retracement and entered in short term bullish zone in respect to prior chart pattern.

Now price is around 38% retracement of fall from 3120 to 2640 which is 2817. It should cross above this level, if failed to do so , there will be creation of double top and that will work as solid resistance. 2720 is level to watch, if crude go below it, then double top formation will come in place and we can expect free fall of this commodity.

Silver @ its support, is it good level to buy ??

 Is it good level to buy silver ? 

 As seen in the attached hourly chart, silver opened gap down today with bearish sentiment in the minds most of traders. But we should use brain in spite of mind with the help of chart levels. 

Fibonacci Retracement

Prior rally was from Rs 45800 to 48450. As shown in chart, 61 % retracement of this upmove is placed around 46840. Today's low is 46875 . So we can say that 61 % retracement is done by silver.

Support level 

Support level is placed around 46950 and price is trading above it and sustained above the level. This happening is making double bottom on the support level.

Conclusion 

One can go for buy positionaly with low quantity with the sl below 46600 because silver looks to be taken support @ 61 % retracement level. Risk reward ratio is good. On upside after breking resistance of 48500 it can fly up to 50000 .

Update 5th aug 2016

CMP is 46733, yesterday silver opened gap down & broke our support level placed @ 46950. At the time of posting this post, price was 47,185 around. Loss of 235 points in this call or analysis. Sorry about that.