Wave Analysis 16.10.2013 (DJIA Index, Crude Oil)

Analysis for October 16^th, 2013

DJIA Index

We may assume that the Index finished wave B in the form of zigzag pattern; earlier the price formed a bearish impulse inside wave A. We can’t exclude a possibility that in the nearest future the instrument may form an initial impulse inside wave [1].



As we can see at the H1 chart, yesterday the price formed a bullish impulse inside wave [C]. On the minor wave level, the Index completed an initial impulse inside wave (1). After finishing a local correction, the market is expected to start falling down inside the third wave.

Crude Oil

Oil is about to finish double three pattern inside wave (4). It looks like the price is going to reach a new minimum during the day. Later the instrument is expected to start growing up while forming wave 1.



More detailed wave structure is shown on the H1 chart. Wave [C] is taking the form of diagonal triangle pattern with the fifth wave inside it. The market may continue moving downwards during the day.



 
RoboForex Analytical Department