It is the ICOMDEX monthly timeframe chart where the price has started a new impulsive cycle from the low of 1270. The price has broken out 20 & 50 Exponential moving averages. RSI is snowing bullish momentum with a 56.97 level.
Wave formation and Fibonacci relationships:
Wave (2) retraced 38.2% of wave (1).
Wave (3) is a power-extended wave with 3.618% Fibonacci extension.
Wave (2) is trading above the starting point of wave (1)
Wave (4) retraced 61.8% of wave (3).
Wave (4) hasn’t entered the price territory of wave (1) and has formed a complex correction of W-X-Y.
Crude oil has accomplished the complex correction and marked evidence by breaking the descending channel of the corrective structure. According to the Elliott wave principle, an impulsive cycle can only be confirmed by breaking out the sub-wave X of the previous correction. If the price breaks out wave X, traders can see the following levels: 10550 – 11500 – 12744+. Not having confirmation will be the confirmation of the continuation of the corrective phase.
MCX CRUDE OIL
Timeframe: Weekly As we can see on the above chart, we are getting a similar structure, and mainly the confirmation. ICOMDEX & MCX CRUDE OIL can be a comrade to confirm each other, just like we used to compare Dow Jones with other indices.
If the price breaks out 7657, traders can trade crude oil for the following targets: 8200 – 8950 – 9950+. We still need to look at the lower timeframe to connect the worm’s-eye view(Micro picture) with the given eagle view.
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