Wave Analysis 02.05.2013 (DJIA Index, Crude Oil)


Analysis for May 2nd, 2013

DJIA Index

Despite the fact that the Index made a rapid descending movement, the main scenario still implies that the market is now moving inside the fifth wave. Now there is a possibility that the instrument may form diagonal triangle pattern inside wave [5], which means that the price may reach new maximums during the next several days.

After forming double zigzag pattern inside wave [4], the Index started moving upwards. On the minor wave level, the instrument completed zigzag pattern inside wave (1). After finishing a local correction, the price is expected to start growing up and form the third wave.

Crude Oil

Oil is starting a new descending movement. We can’t exclude a possibility that wave [B] was finished and right now the bears are starting wave [C]. Most likely, the instrument will continue moving downwards during the next several days. The target is at the level of $81 per barrel of Light Sweet.

More detailed wave structure is shown on the H1 chart.  It looks like wave [B] took the form of zigzag pattern. Currently the price is forming an initial descending impulse with the fourth wave inside it. The instrument is expected to reach a new local minimum during Thursday.

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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.