Wave Analysis 19.05.2014 (DJIA Index, Crude Oil)


Analysis for May 19th, 2014

DJIA Index

It looks like Index is still forming flat pattern inside wave (2). Earlier, price completed bullish wedge pattern inside wave (1). Later instrument is expected to complete correction and start growing up inside the third wave.

More detailed wave structure is shown on H1 chart. Probably, Index is about to finish descending impulse inside wave C of (2). Possibly, price may break minimum of wave A during the day. Later instrument may reverse and start forming initial ascending impulse.

Crude Oil

Chart structure has been changed. Probably, Oil is completing wave 2 with wave [B] in the form of flat pattern inside it. In the future, price may finish impulse inside wave [C] and reverse downwards.

As we can see at the H1 chart, price is forming diagonal triangle pattern inside wave [C]. On minor wave level, Oil is finishing the fifth wave. I opened short-term buy order with target placed on upper border of above-mentioned pattern.

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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.