Wave Analysis 04.03.2013 (DJIA Index, Crude Oil)


Analysis for March 4th, 2013

DJIA Index

The Index failed to make a reverse. Earlier the price formed divergent horizontal triangle inside wave [4]. Right now the price is forming the fifth wave. We can’t exclude a possibility that in the nearest future the instrument may start a new ascending movement and break a local maximum.

More detailed wave structure is shown on the H1 chart. After finishing an impulse inside wave (1), the price completed zigzag pattern inside the second one. I should also note that the Index has already formed an initial ascending impulse inside wave (3). During Monday the instrument is expected to start growing up and form wave 3 of (3).

Crude Oil

Oil is still moving downwards and expanding wave (3). On the minor wave level the instrument is finishing the fifth wave. Most likely, in the nearest future the price will start a correction.

As we can see at the H1 chart, the price is finishing the third wave inside wave 5 and may start the fourth one during the next several hours. However, the bears are expected to reach the level of $89 per barrel of Light Sweet while forming 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.