After looking at the daily chart of NYMEX crude oil daily chart it seems that crude is trading in pretty up trend and above 114$ fire works can start any time in this counter as per Elliott wave’s wave principle it has completed its wave 1 on march 07, 2011 that was started on Feb 11, 2011 and then a lovely retracement seen on till 96.70 as wave 2 that is completed on Mar 15, 2011 and now it is trading in 3rd wave that is known as longest wave of impulse phase. As per wave theory this wave can head towards 120 in near term that is 161.8% fib extension of wave 1. If it close above 120 during 2 or more trading session in future then this wave can continue up to 142$ in near future that will be 261.80% extension of wave 1. After looking at MACD oscillator it is also getting ready for bullish breakout above 114 that will attract floor traders and small traders also with positive momentum. It has defined a risk around $105 for bulls. This wave count may fail if crude close below 105 on daily basis otherwise trend will continue and crude will try to head towards 120-142 in near term.
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narayanarao