Wave Analysis 05.12.2012 (DJIA Index, Crude Oil)


Analysis for December 5th, 2012

DJIA Index

We may assume that the Index has already finished forming zigzag pattern inside wave [2]. On the minor wave level the price is forming a descending impulse inside wave (1). The instrument may start falling down again during the day.

At the H1 chart we can see that wave (C) of [2] was finished in the form of diagonal triangle pattern. After completing an initial impulse, the price started a corrective movement, which is taking the form of flat pattern. In the near term, we can expect the Index to start forming the third wave.

Crude Oil

It looks like Oil has already finished double zigzag pattern inside wave (2). Earlier the price completed a descending wedge pattern inside the first wave. Most likely, the instrument will continue falling down inside wave (3) during which the bears may reach the level of $75 per barrel of Light Sweet.

As we can see at the H1 chart, several days ago the price finished zigzag pattern inside wave Y. Right now the market is forming an initial descending impulse inside wave 1. In the near term, the instrument may continue moving downwards.

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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.