Analysis for May 8th, 2014
DJIA Index
Price is starting new ascending movement. It looks like Index is forming
extension inside wave
(3). Possibly, market may reach new historic maximum during Thursday.
More detailed wave structure is shown on H1 chart. After finishing
wedge pattern inside the first wave, Index formed
zigzag pattern inside the second one. In the near term, instrument is expected to continue growing up inside wave
3 of (3).
Crude Oil
Probably, Oil is forming extension inside wave
3. On minor wave level, price formed bearish impulse inside the first wave and right now is completing local correction. In the future, instrument is expected to start falling down again inside wave
[3] of 3.
As we can see at the H1 chart, wave
[2] is taking the form of
zigzag pattern. Later price is expected to move downwards inside the first wave, which may be a good signal to open several more sell orders. Instrument may break minimum of wave
[1] until the end of this trading week.
RoboForex Analytical Department