Analysis for February 18th, 2013
It looks like the Index is still forming wave 5 of (1)
. On the minor wave level the price is forming diagonal triangle
pattern inside the fifth wave. Most likely, in the nearest future the instrument will continue moving upwards and break a local maximum.
As we can see at the H1 chart, last Friday the price completed wave (2)
in the form of zigzag
pattern. At the moment a local correction is taking place. Most likely, in the nearest future the instrument will start moving upwards inside wave C of (3)
The bulls are still dominant. We may assume that at the moment the price is finishing the second wave. Later the instrument is expected to form a short initial ascending impulse and the continue moving upwards and form the third wave.
More detailed wave structure is shown on the H1 chart. We can’t exclude a possibility that zigzag
pattern inside wave (2)
was completed. During the day the price is expected to start a new ascending movement and then break a local maximum.
RoboForex Analytical Department