Analysis for May 2nd, 2013
DJIA Index
Despite the fact that the Index made a rapid descending movement, the main scenario still implies that the market is now moving inside the fifth wave. Now there is a possibility that the instrument may form
diagonal triangle pattern inside wave
[5], which means that the price may reach new maximums during the next several days.
After forming
double zigzag pattern inside wave
[4], the Index started moving upwards. On the minor wave level, the instrument completed
zigzag pattern inside wave
(1). After finishing a local correction, the price is expected to start growing up and form the third wave.
Crude Oil
Oil is starting a new descending movement. We can’t exclude a possibility that wave
[B] was finished and right now the bears are starting wave
[C]. Most likely, the instrument will continue moving downwards during the next several days. The target is at the level of $81 per barrel of Light Sweet.
More detailed wave structure is shown on the H1 chart. It looks like wave
[B] took the form of
zigzag pattern. Currently the price is forming an initial descending impulse with the fourth wave inside it. The instrument is expected to reach a new local minimum during Thursday.
RoboForex Analytical Department