Analysis for September 15th, 2014
DJIA Index
The DJIA Index continues forming diagonal triangle inside wave 5. It looks like the price is forming an ascending zigzag pattern inside wave [5]. In the future, after completing a local correction, the market is expected to form a bullish impulse inside wave (C).
More detailed wave structure is shown on H1 chart. The DJIA Index is still forming a bearish impulse in wave C, inside which the price is falling in the third wave. During a local correction, I opened a sell order with the stop loss at the latest maximum.
Crude Oil
Oil is still moving inside a descending channel. After rebounding from the channel’s upper border, the price started forming the fifth wave. It looks like the market is going to reach several new lows this week, that’s why I continue selling.
As we can see at the H1 chart, Oil had formed a descending wedge pattern inside wave (1). After that, the price completed wave (2) quite fast in the form of zigzag and started falling quickly inside the third wave. Possibly, the market may reach a new low on Monday.
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