Analysis for February 20th, 2013
DJIA Index
It looks like the Index continues forming
diagonal triangle pattern inside the fifth wave. Yesterday the bulls reached a new local maximum, but they are very unlikely to continue pushing the price upwards. The chances of a reverse are growing.
More detailed wave structure is shown on the H1 chart. Inside
diagonal triangle pattern the price is forming the third wave, which is taking the form of
zigzag. Most likely, the instrument will start forming a correction inside the fourth wave in the nearest future.
Crude Oil
We may assume that the price completed
zigzag pattern inside wave
[4] and then started forming the fifth wave. On the minor wave level the instrument is forming wave
(3). We can’t exclude a possibility that Oil may break a local maximum during the next several days.
As we can see at the H1 chart, Oil formed wave
(2) in the form of
zigzag pattern. Currently the price is forming the third wave inside wave
1. The instrument may continue moving upwards during Wednesday.
RoboForex Analytical Department