Analysis for July 28th, 2014
DJIA Index
Index starts correction. After forming triangle pattern inside wave (4) and impulse inside the fifth wave, price is forming the initial descending impulse inside wave (A). Probably, price will be falling down over the next few days.
As we can see at H1 chart, wave 5 formed diagonal triangle. On minor wave level, bearish impulse was formed inside wave 1. Consequently, this impulse was corrected by the second wave. In the near term, price is expected to continue falling down inside the third wave.
Crude Oil
Oil is still being corrected. Probably, after the bearish impulse formation inside wave 1 or A, zigzag will be formed inside wave 2 or B. During the week I expect the further local ascending movement leading to the breakout of local minimum.
More detailed wave structure is shown at H1 chart. Probably, after the formation of impulse inside wave [A] and zigzag inside wave [B], price is forming the impulse inside wave [C]. In the future, during corrections I am planning to open additional trades.
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