Wave Analysis 21.05.2013 (DJIA Index, Crude Oil)

21.05.2013

Analysis for May 21st, 2013

DJIA Index

The Index continues forming a bullish impulse inside wave [5]. On the minor wave level, the price is forming the fifth wave. In order to complete the whole structure, the instrument needs several more waves. We can’t exclude a possibility that the bulls may test the maximum, but later the Index is expected to start a correction.



More detailed wave structure is shown on the H1 chart. It looks like the price is forming diagonal triangle pattern inside wave (5). After completing the fourth wave, the Index is expected to start forming a final bullish impulse.



Crude Oil

On the minor wave level, after completing zigzag pattern inside wave 2, the price formed an initial impulse. We may assume that right now Oil is starting the third ascending wave. I’m keeping two buy orders and planning to open several more later.



As we can see at the H1 chart, after the instrument had completed wave [2], the bulls are back to the market. In the future, the price is expected to complete a local correction and then break the maximum. The bulls may reach the level of $98 per barrel of Light Sweet while forming the third wave.



 
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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.

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