Wave Analysis 16.05.2014 (DJIA Index, Crude Oil)


Analysis for May 16th, 2014

DJIA Index

It looks like Index is forming flat pattern inside wave (2). Earlier, price completed wedge pattern inside the first wave. Right now, I’m staying out of the market, but if later instrument starts forming initial ascending impulse inside wave 5 of (3), I’ll start buying.

More detailed wave structure is shown on H1 chart. Probably, right now Index is forming bearish impulse inside wave C of (2). During the day, instrument may complete this wave after breaking minimum of wave A.

Crude Oil

Probably, Oil is starting new descending movement inside wave [3]. Earlier price completed correction inside the second wave. Stop on my sell order is already in the black. In the future, I’m planning to open several more orders during local corrections.

As we can see at the H1 chart, wave [2] took the form of zigzag pattern. On minor wave level, Oil finished ascending impulse inside wave (C). Most likely. Price will form initial impulse inside wave (1) during the next several days.

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