Analysis for July 21st, 2014
DJIA Index
Possibly, Index is reversing. Earlier price formed skewed triangle pattern inside wave (4) and then completed the fifth one. Probably, after local correction, instrument may continue falling down inside wave (A).
As we can see at the H1 chart, price completed wave (5) in the form of diagonal triangle pattern. Last week, Index formed descending impulse inside wave 1. In the near term, instrument is expected to finish wave 2 and start new descending movement inside the third one.
Crude Oil
After completing descending wave 1 or A, Oil started correction. Probably, this correction may continue during the next several days and reach new local high.
After completing bullish impulse inside wave [A], market started correction. Possibly, wave [B] was also completed and, on minor wave level, Oil formed initial impulse inside wave [C]. I’ve got only one buy order so far with stop loss at current low.
