Analysis for July 24th, 2014
DJIA Index
It looks like Index is making a reverse. Earlier, after completing horizontal triangle pattern inside wave (4), price formed impulse inside the fifth one. I’m still keeping two sell order with stop loss at current high.
Key moment in trading here is bearish impulse inside wave 1. Later price formed zigzag pattern inside the second wave and right now is starting falling down inside the third one. Possibly, Index may continue moving towards new lows during the day.
Crude Oil
After completing bearish impulse inside wave 1 or A, Oil started correction. In the near term, price is expected to continue local growth inside wave 2 or B. Instrument may reach new local high in the nearest future.
As we can see at the H1 chart, Oil is forming diagonal triangle pattern inside wave [C]. During local correction, I opened buy order with stop loss near current low. Later instrument is expected to break high of wave [A].
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