Analysis for April 5th, 2013
Well, the current price movement looks less and less like a reverse. Most likely, in the nearest future the Index will form another bullish wave inside the fifth wave. Expecting this to happen, I opened a buy order with the tight stop.
It looks like at the H1 chart the price is forming diagonal triangle
pattern. On the minor wave level, the instrument is forming horizontal triangle
pattern inside the fourth wave. During the next several hours, the Index is expected to start a new ascending movement inside the fifth wave and break the maximum.
We can’t exclude a possibility that the instrument is still forming triangle
pattern inside wave B
. In this case the current descending movement may be considered as wave [E]
. If Oil rebounds from the pattern’s lower border, the market will start growing up again.
More detailed wave structure is shown on the H1 chart. We may assume that yesterday the price completed an expansion
inside wave 3
and right now, a local correction is taking place. Later, after finishing the fourth wave, Oil may start a new descending movement.
RoboForex Analytical Department