Wave Analysis 20.05.2014 (DJIA Index, Crude Oil)


Analysis for May 20th, 2014

DJIA Index

Probably, Index completed flat pattern inside wave (2). On minor wave levels, price is forming first initial impulse inside the third wave. Possibly, instrument may reach new maximums during the next several weeks.

More detailed wave structure is shown on H1 chart. Probably, Index finished descending impulse inside wave C and then completed wedge pattern inside wave 1. Later, after local correction, instrument may start new ascending movement inside the third wave.

Crude Oil

It looks like Oil is forming zigzag pattern inside wave 2. On minor wave level, price is about to finish wave [C]. In the future, price is expected to reverse and start falling down inside initial wave [1].

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.