Wave Analysis 20.08.2013 (DJIA Index, Crude Oil)


Analysis for August 20th, 2013

DJIA Index

The Index is forming a descending impulse inside wave [A]. Earlier the market completed a long extension inside wave 3. On the minor wave level, the market is expected to continue falling down inside a bearish wave (3).

More detailed wave structure is shown on the H1 chart. It looks like the price is completing wave 3. There is a possibility that the instrument may form several more descending waves, but later it is expected to start a new correction.

Crude Oil

After finishing wave (4), Oil formed an initial ascending impulse inside the fifth wave. Right now, the market is being corrected. After completing wave 2, the instrument is expected to start moving upwards inside wave 3 of (5).

As we can see at the H1 chart, wave 1 took the form of wedge pattern; the current local correction is taking the form of zigzag pattern. In the near term, the instrument is expected to complete wave [C] of 2 and then start moving upwards inside the third one.

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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.