Wave Analysis 20.08.2014 (DJIA Index, Crude Oil)

20.08.2014

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.



 
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