|
| Discuss CRUDE OIL - negative Divergence !!!! at the Technical Analysis within the Traderji.com - Discussion forum for Stocks Commodities & Forex; Crude Oil which touched a high of almost $120 in international markets has fallen heavily ... |
|
|||||||
| Register | Blogs | FAQ | Chat Room | Search | Today's Posts | Mark Forums Read |
| Technical Analysis Discussion of all the principles involved in technical analysis. |
|
Welcome to the Traderji.com - Discussion forum for Stocks Commodities & Forex. You are currently viewing our boards as a guest which gives you limited access to view most discussions and access our other features. By joining our free community you will have access to post topics, communicate privately with other members (PM), respond to polls, upload content and access many other special features. Registration is fast, simple and absolutely free so please, join our community today! If you have any problems with the registration process or your account login, please read the FAQ. |
 |
|
|
Thread Tools |
| Sponsored Links |
|
#1
5th May 2008, 03:52 PM
|
|||
|
|||
CRUDE OIL - negative Divergence !!!!
Crude Oil which touched a high of almost $120 in international markets has fallen heavily in last couple of days .
However signals were already available on the price charts of an 'impending downmove'. The chart of Crude Oil on MCX clearly shows a 'negative divergence' on the RSI and MACD two commonly used indicators. After touching a high of Rs 4785 it has fallen to current level of Rs 4500.Indications are strong that in coming days it may most likely test sub-Rs 4400 initially and then still lower levels of Rs sub-Rs 4200/-. The divergences will be negated if price rises beyond 4800/- on MCX ( $120.50 equivalent) The general consensus among analysts on major TV channels suggest $150 in the next few weeks, while the Price charts are saying something opposite!! It will be interesting to track both - the analysts' target as well as the targets of the price charts Happy observing ! (i presume not many of you trade in crude oil) CA Rajiv D Khatlawala 
|
|
#2
5th May 2008, 04:00 PM
|
|||
|
|||
|
Re: CRUDE OIL - negative Divergence !!!!
I doubt 150, seeing the divergences its getting ready to follow gold on the downside, though I would be carefull putting stops on Rupee value as rupee has been depreciating consistently in the last few days, when it hit 120 $ rupee was 40.0x & today its above 40.6x
|
|
#3
5th May 2008, 04:13 PM
|
|||
|
|||
|
Re: CRUDE OIL - negative Divergence !!!!
Quote:
Quite correct ... As in case of other international commodities, it may be prudent to follow the international prices / price chart ... or alternatively adjust for the fluctuation in the domestic exchange rate.... CA Rajiv
|
|
#5
5th May 2008, 06:07 PM
|
|||
|
|||
|
Re: CRUDE OIL - negative Divergence !!!!
true oil may observe a 5th wave kindof fall which most equity market & gold has gone thru... now the bullish statements since last few days are seemingly being used to distribute, IMHO. personally i shorted at 118 & covered at 113, think tonite should watch closely for opportunity. breaking 110 will confirm...
hey Sudoku any magic levels from you ? Last edited by Czar : 5th May 2008 at 06:14 PM.
|
|
#6
5th May 2008, 07:43 PM
|
|||
|
|||
|
Re: CRUDE OIL - negative Divergence !!!!
Owing to the way in which the RSI (or MACD or momentum/ROC or whatever price oscillator) is calculated, divergence "will" be visible when the prices fall-rise-fall again (positive divergence) or rise-fall-rise again (negative divergence). Why? Because the retracement causes averaging out of the indicator and the indicator moves upto central level.
Repost of: It has no predictive ability, unless such an outcome is a function of random noise.
|
|
#7
5th May 2008, 09:23 PM
|
|||
|
|||
Re: CRUDE OIL - negative Divergence !!!!
Quote:
Wah ustad vah!!!! Thank you dear OXY for that!!! 
|
|
| Thread Tools | |
|
|
Indemnity, Disclaimer & Disclosure
Notice:
• By visiting Traderji.com you indicate your acceptance of our Forum
Rules Disclaimer & Disclosure and indemnify Traderji.com, its
associates and related parties of all claims howsoever resulting from
the usage of the forum.
• Disclaimer: Trading or investing in stocks & commodities
is a high risk activity. Any action you choose to take in the markets
is totally your own responsibility. Traderji.com will not be liable for
any, direct or indirect, consequential or incidental damages or loss
arising out of the use of this information.
• Disclosure: The information in this forum is neither an offer
to sell nor solicitation to buy any of the securities mentioned herein.
The writers may or may not be trading in the securities mentioned.
• All names or products mentioned are trademarks or registered trademarks of their respective owners.
General Content Disclaimer Notice:
In light of our policy of encouraging candid, open exchanges of views and the rapid distribution of information originating from many sources, Traderji.com cannot determine the accuracy of information that may be uploaded to the forum. Opinions, advice and all other information expressed by participants in discussions are those of the author. You rely on such information at your own risk. You are urged to seek professional advice for specific, individual situations and not rely solely on advice or opinions given in the discussions. Since Traderji.com is an open and free discussion forum, any comments made by members of this forum in their posts reflect their own views and not of the owner or administrator of Traderji.com. Thus the owner/administrator indemnify themselves of all claims whatsoever and will not be liable or responsible for any members comments/views in this forum Traderji.com. If you find any objectionable or offensive posts made by members of this forum which you would like to bring to our notice for removal then please Contact Us.
