Analysis for March 26th, 2013
The current chart structure implies that the price completed an impulse inside wave 5 and may start a correction in the nearest future. However, the current trend is quite strong so far, so we can’t exclude a possibility that the Index may expand the fifth wave.
There is a possibility that yesterday’s descending movement was an initial wave. If this assumption is correct, then right now the price is forming the second wave and may start the third one quite soon. The critical level for this scenario is the maximum а wave 1.
It looks like wave  is already completed, so we can expect Oil to make a reverse. If the bears are able to form a strong initial impulse inside wave (1), the price will start falling down very fast. On the other hand, if the instrument continues growing up, we will have to reconsider this chart structure.
More detailed wave structure is shown on the H1 chart. After completing a bearish impulse the price started a correction. On Tuesday I expect Oil to start moving downwards inside wave 3.
This Market Analysis is reproduced here with permission from RoboForex’s Analytical Department. Forecasts presented in this section only reflect the author’s private opinion and should not be considered as guidance for trading.