Analysis for July 22nd, 2014
DJIA Index
Index is still reversing. Possibly, after completing wave (5), Index started forming impulse inside wave (A). In the near term, instrument is expected to start new descending movement and break previous minimum.
As we can see at the H1 chart, after completing diagonal triangle pattern inside the fifth wave, Index formed bearish impulse inside the first one. After the second wave, instrument is expected to start new descending movement inside the third one. I’m planning to increase my short position while price is forming initial impulse inside the third wave.
Crude Oil
Oil is still being corrected. Probably, after completing descending impulse inside wave 1 or A, price started forming zigzag pattern inside wave 2 or B. I’ve got two sell orders; instrument is expected to break local high quite soon.
More detailed wave structure is shown on H1 chart. Possibly, after completing wave [B] yesterday, market started moving upwards inside wave [C], internal structure of which implies that Oil may continue growing up.
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