Technical Outlook & Trading Strategy:-
The price action of crude since 24th Aug, 2011 has been taking shape of a bearish Head & shoulders pattern on its daily charts.
This is an extremely bearish price pattern and signifies distribution and can lead to severe correction in the price of an index/stock or a commodity.
The prices have been trading below its key moving average clusters and the momentum indicators have been trading in sell mode.
We recommend day / positional traders to take short positions between Rs 3920--Rs 3950 levels with a stop loss placed above Rs 3993 levels for downside targets of Rs 3875 / Rs 3840 levels expected to be achieved over the upcoming 2-3 sessions of trade.
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