Crude oil: Bounce

MCX Crude oil has formed a five wave decline on the daily chart. It is now moving up from the daily lower Bollinger Band. The daily momentum indicator has triggered a bullish crossover. Hence the oil is expected to move higher. The 20 day moving average (DMA; 4945) and the 40 day exponential moving average (DEMA; 5017) are the short term resistances. If the move stretches it can move till 5105 – 5205 (50% - 61.8% retracement). However, as the weekly momentum indicator suggests, the medium term trend is down. Hence from the higher levels the oil is expected to again fall towards 4710 and can potentially breach that level.
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