Wave Analysis 03.12.2012 (DJIA Index, Crude Oil)

Analysis for December 3^rd, 2012

DJIA Index

After completing divergent wedge pattern inside wave [1], the Index started a corrective movement. It looks like the second wave is taking the form of zigzag pattern. In the near term, the instrument may continue growing up for a while, but later it is expected to make a reverse and start moving downwards.



As we can see at the H1 chart, wave 2 was finished in the form of some irregular pattern. We may assume that right now the price is starting forming the third wave. The bulls may reach a new local maximum during the day.

Crude Oil

Oil continues a corrective movement. We may assume that wave (2) is taking the form of double zigzag pattern. We can’t exclude a possibility that the price may break a local maximum while forming wave Y during Monday. In the future the instrument may make a reverse and start a new descending movement.



More detailed wave structure is shown on the H1 chart. At the moment the price is forming zigzag pattern inside wave Y. On the minor wave level the price is forming an impulse inside wave [C]. In the near term, the instrument may continue growing up a bit, but it is expected to make a reverse very soon.



 
RoboForex Analytical Department