Analysis for May 7th, 2014
DJIA Index
Price is still consolidating. Probably, after completing wave (2), Index is forming extension inside the third one. In the near term, market is expected to finish local correction and start growing up again.
As we can see at the H1 chart, after finishing wave (2) in the form of zigzag pattern, Index completed wedge pattern inside wave (1), and I decided to buy order, which is in a drawdown a bit right now. Possibly, price may break previous minimum during the day. If later market forms initial bullish impulse, I’ll increase my long position.
Crude Oil
Oil continues forming the third wave. Probably, earlier price formed bearish impulse inside wave 1. Most likely, in the nearest future instrument may start falling down again and break minimum of the first wave.
More detailed wave structure is shown on H1 chart. It looks like yesterday price completed wave (2). Most likely, during Wednesday instrument will start new descending movement inside the third wave.
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