Wave Analysis 22.11.2012 (DJIA Index, Crude Oil)
22.11.2012
Analysis for November 22nd, 2012
DJIA Index
It looks like the Index is forming the second wave at the moment. A correction is taking the form of zigzag pattern and may continue until the end of this week. Later the instrument is expected to make a reverse and start falling down inside the third wave.
As we can see at the H1 chart, inside wave (5) there is a disproportion between the second and the fourth waves. Right now the price is completing wave (C). The bulls may reach a new local maximum during the day, but the instrument is very unlikely to make a significant ascending movement.
Crude Oil
It looks like Oil is going to start a significant descending movement. Earlier this week the price finished wave (2). At the moment a local correction is taking place, after which the instrument is expected to start forming wave (3). The target for the bears is the level of $75 per barrel of Light Sweet.
More detailed wave structure is shown on the H1 chart. We can see that wave 1 was completed a bit reduced. Wave 2 may be finished until the end of this week. In the near term, Oil is expected to continue moving downwards inside the third wave.
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Forecasts presented in this section only reflect the author’s private opinion and should not be considered as guidance for trading. RoboForex bears no responsibility for trading results based on trading recommendations described in these analytical reviews.