Crude on mcx , is forming a text book rising wedge pattern. which has bearish implication when gives a breakdown from the lower upward sloping trendline.
watch out for your long.
theory:
1)there should be an strong uptrend in the asset and should make a peak on a higher volume .
2) and then the price action forms a wedge type pattern and tries tries to retest or break the previous highs, but generally the volumes are low or decreasing within the wedge formation.
3)when there is a breakdown from wedge formation, there is a good steep fall, and if there is pullback near the breakout level the fall would continue for next 5 to 10% or more, depending on the assets nature.
keep your longs in check. and keep stops on longs tight.
watch out for your long.
theory:
1)there should be an strong uptrend in the asset and should make a peak on a higher volume .
2) and then the price action forms a wedge type pattern and tries tries to retest or break the previous highs, but generally the volumes are low or decreasing within the wedge formation.
3)when there is a breakdown from wedge formation, there is a good steep fall, and if there is pullback near the breakout level the fall would continue for next 5 to 10% or more, depending on the assets nature.
keep your longs in check. and keep stops on longs tight.