Wave Analysis 04.01.2013 (DJIA Index, Crude Oil)


Analysis for January 4th, 2013

DJIA Index

We may assume that the Index is forming double zigzag pattern inside wave [2]. On the minor wave level the price finished an impulse inside wave A. Most likely, after completing a local correction, the instrument will start a new ascending movement inside wave C of (Y).

More detailed wave structure is shown on the H1 chart. It looks like the price started a correction inside wave B. There is a possibility that the gap level may become a support one; the instrument may rebound from it and start forming a bullish wave C.

Crude Oil

It looks like a correction continues; wave (2) is taking the form of zigzag pattern with wave C inside it. In the near term, the price may grow up a little bit, but later Oil is expected to make a reverse and start a new descending movement inside the first wave.

As we can see at the H1 chart, wave [5] is being expanded. On the minor wave level the price finishing the fourth wave. The price movement is supported by the gap level; if the instrument rebounds from it, the price will start a new ascending movement inside the fifth wave.

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Forecasts presented in this section only reflect the author’s private opinion and should not be considered as guidance for trading. RoboForex bears no responsibility for trading results based on trading recommendations described in these analytical reviews.