Analysis for August 20th, 2013
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.
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.
RoboForex Analytical Department