WTI Crude Oil: Downtrend Likely To Continue

WTI Crude Oil (Nymex) CMP:  $36.20/bbl
Strategy: Sell @ 33 (CMP) | Stop @ 38.5| Target @ 26.9 — 25 — 21.4WTI Crude Oil technical chart indicates that prices will continue to decline in the coming sessions if it fails to cross the resistance level of 38.5 on daily closing basis. It is currently quoting at $33/bbl, below the previous bottom of 34.5 (Point Y).

The Long term chart shows formation of A-B-C Pattern with wave C in continuation, Where as the short term chart is forming Rising Wedge Pattern continuation, trading below the breakdown level of 35.9 which indicates correction in prices to continue.

WTI Crude Oil fell from 43.5 (Point X) in November end to the low of 34.5 (Point Y) in Mid December last year. Thereafter, prices went in to consolidation phase and retraced over 50% of the fall from Point X to Point Y and touched 38.38 on the higher side, before resumption of downtrend.

WTI Crude Oil is expected to decline further from the current levels if it sustain below the level of 36.

The difference between Point X and Point Y comes to 9 points. Considering 100% of this difference from breakdown point Z @ 35.9, the downside target comes to 26.9 level. Thereafter, the next target could be 25 and 21.4, which are 121 and 161% of the same difference.

However, if WTI Crude Oil reverts from the current level and crosses the resistance of 40 daily on closing basis then prices may rise towards 51 level. 

WTI CRUDE OIL - Strategy: Sell @ 33 (CMP) | Stop @ 38.5| Target @ 26.9 — 25 — 21.4

WTI Crude Oil (Nymex) CMP:  $36.20/bbl
WTI Crude Oil: Downtrend Likely To Continue

WTI Crude Oil technical chart indicates that prices will continue to decline in the coming sessions if it fails to cross the resistance level of 38.5 on daily closing basis. It is currently quoting at $33/bbl, below the previous bottom of 34.5 (Point Y).

The Long term chart shows formation of A-B-C Pattern with wave C in continuation, Where as the short term chart is forming Rising Wedge Pattern continuation, trading below the breakdown level of 35.9 which indicates correction in prices to continue.

WTI Crude Oil fell from 43.5 (Point X) in November end to the low of 34.5 (Point Y) in Mid December last year. Thereafter, prices went in to consolidation phase and retraced over 50% of the fall from Point X to Point Y and touched 38.38 on the higher side, before resumption of downtrend.

WTI Crude Oil is expected to decline further from the current levels if it sustain below the level of 36.

The difference between Point X and Point Y comes to 9 points. Considering 100% of this difference from breakdown point Z @ 35.9, the downside target comes to 26.9 level. Thereafter, the next target could be 25 and 21.4, which are 121 and 161% of the same difference.

However, if WTI Crude Oil reverts from the current level and crosses the resistance of 40 daily on closing basis then prices may rise towards 51 level. 

WTI Oil Faces Resistance At $38/bbl

WTI Crude Oil (Nymex) : Sell @ 35.41 (CMP) | Stop @ 38| Target @ 26.75 — 21.65 

The WTI Oil is currently quoting at $35.4/bbl trading below the previous bottom point B at 37.75 level. The above technical chart shows A-B-C Pattern, with Wave C is in continuation. The chart indicates that downfall in prices will continue in the coming sessions if resistance of 38 holds on daily closing basis. .

WTI Oil had fallen from 62 (Point A) in June and tested the support level of 37.75 (Point B) in August. Thereafter, prices retraced by more than 50% of fall seen from Point A to Point B and tested the high of 51 (Point C) nearing to 61.8% and resumption of down trend was seen.
WTI Oil prices are trading below the previous bottom  of point B at 37.75 and is expected to continue to move downward unless a breakout occurs above 38 on closing basis. If  prices breaks the support of 34.75 then prices would weaken further.
The difference between Point A and Point B comes to 24.25 points. Considering 100% of this difference from Point C, the downside target comes to 26.75 level. Thereafter, the next target could be 21.65, which is 121% of the same difference.
However, if prices reverts from the current level and crosses the resistance of 38 on closing basis then prices may rise towards 51 level.

WTI Oil Faces Resistance At $38/bbl

WTI Crude Oil (Nymex) : Sell @ 35.41 (CMP) | Stop @ 38| Target @ 26.75 — 21.65 

The WTI Oil is currently quoting at $35.4/bbl trading below the previous bottom point B at 37.75 level. The above technical chart shows A-B-C Pattern, with Wave C is in continuation. The chart indicates that downfall in prices will continue in the coming sessions if resistance of 38 holds on daily closing basis. .

WTI Oil had fallen from 62 (Point A) in June and tested the support level of 37.75 (Point B) in August. Thereafter, prices retraced by more than 50% of fall seen from Point A to Point B and tested the high of 51 (Point C) nearing to 61.8% and resumption of down trend was seen.
WTI Oil prices are trading below the previous bottom  of point B at 37.75 and is expected to continue to move downward unless a breakout occurs above 38 on closing basis. If  prices breaks the support of 34.75 then prices would weaken further.
The difference between Point A and Point B comes to 24.25 points. Considering 100% of this difference from Point C, the downside target comes to 26.75 level. Thereafter, the next target could be 21.65, which is 121% of the same difference.
However, if prices reverts from the current level and crosses the resistance of 38 on closing basis then prices may rise towards 51 level.

Rupee Outlook: INR Fall May Continue Versus US Dollar

USDINR Spot Buy @ 66.76 | Stop @ 64.68 | Target @ 69.12 — 71.73 — 75.78

The Indian rupee, currently quoting at 66.76/$, is expected to continue its decline against the US dollar and it can test the level of 71.73 in the medium term.

The Indian rupee depreciated to test an all-time low of 68.80 (Point B) in August 2013 from 51.36 (Point A) level in October 2012.

Thereafter, the rupee appreciated to test the level of 58.34 (Point C) in May 2014. The local currency depreciated later, moving in a channel, and recently touched a low of 67/$.

The rupee is expected to cross the resistance level of 67.06, which is 50% expansion and will further depreciate to test the level of 69.12 and 71.73, which are 61.8% and 76.4% expansion of Point A-Point B from Point C, respectively.

The rupee is likely to get weaker as the Dollar Index will strengthen against the basket of currencies due to signs of improvement in the US economy. The Dollar Index is currently at 98.20 and can move further higher. If it remains above the support level of 97.50 then the Dollar Index may rise towards 101 and 103 levels.

However, if rupee appreciates from the current level and crosses 64.68 then currency may appreciate further to 62.15 level, which seams difficult at current scenario.

MCX Zinc May Fall To 105 If Fails To Cross Resistance Level.

MCX Zinc Oct: Sell CMP @ 112.65/Kg | Stop @ 113.50 | Target @ 109 – 105

MCX Zinc Outlook Bearish, Resistance At 113.50 Should Hold

Zinc futures for October delivery on the MCX has formed a Broadening Pattern. The contract is currently trading at 112.65 and faces resistance at 113.50, just near the rising trend line.

A Broadening Pattern occurs during high volatility, when prices shows great movement with little direction. The pattern was formed after zinc fell sharply from 123.30 to touch the low of 110.

The above chart indicates that zinc is consolidating in a wide range. If zinc fails to trade above 113.50 then prices are expected to drift lower to touch 109. A break below this level could see prices falling to the lower trend line at 105.

However, if zinc crosses the resistance of 113.50 then prices may rise to 116-120 levels.

NIFTY Sell CMP 8000 Stop @ 8050 tgt 7750 | 7470 | - 7193

Symmetrical Triangle Pattern Formation