Analysis for July 26th, 2013
After making a strong ascending movement inside wave (3)
, the Index started a correction. The current wave structure implies that the price may be forming the fourth wave. Later I expect the price to start the fifth wave and break the latest maximum.
The Index completed diagonal triangle
pattern inside wave 5
, thus finishing the third wave. It looks like wave (4)
is taking the form of zigzag
pattern. On the minor wave level, the instrument is expected to finish wave B
and start falling down inside wave C of (4)
looks completed. Moreover, we can’t exclude a possibility that the price has already formed an initial impulse inside the fifth wave, that’s why I ‘ve decided to open a buy order with the stop placed at the minimum.
More detailed wave structure is shown on the H1 chart. We may assume that wave (4)
was completed in the form of double zigzag
pattern. In the future, the instrument is expected to completed a short wave 2
and start a new bullish rally inside the third one.
RoboForex Analytical Department