Wave Analysis 22.05.2014 (DJIA Index, Crude Oil)
22.05.2014
Analysis for May 22nd, 2014
DJIA Index
Index is starting new ascending movement, just as we expected. It looks like after completing wedge pattern inside wave (1), price formed flat pattern inside the second one. I’ve got only one buy order so far, but if later price forms extension inside wave (3), I’ll increase my position.
More detailed wave structure is shown on H1 chart. After finishing wave C of (2), Index formed initial ascending impulse. Most likely, in the future local correction will take place, after which instrument is expected to start moving upwards inside the third wave.
Crude Oil
Oils continues growing up. Probably, wave 2 is taking the form of zigzag pattern with bullish impulse inside wave [C]. In the future, price is expected to start falling down inside the first wave.
As we can see at the H1 chart, price is forming extension pattern inside wave (3). On minor wave level, Oil is about to finish the fourth wave. Possibly, instrument may start growing up inside wave 5 of (3) during the day.
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