Analysis for August 20th, 2014
DJIA Index
All bears’ achievements of the last several weeks were completely smashed by buyers. Market collapse inside wave
[2] really looked like an impulse for a new descending movement, but this was not to be. Although the current ascending movement is staying within
zigzag pattern so far, but its strong wave
C is much alike an
extension inside the third one, that’s why it’s better even not to think about selling right now and concentrate of a future correction, i.e. the fourth wave.
Crude Oil
In case of Oil, its descending movement is looking more and more like an avalanche. After a short pause inside
horizontal triangle of wave
4, bears are back to their old ways and reach new lows almost every day. A short-term pullback allowed me to open a new short position; the stop loss on a new order is already with a small profit.
RoboForex Analytical Department