Bovespa Index Elliott Wave technical analysis
Function: Bullish Trend
Mode: Impulsive
Structure: Orange Wave 3
Position: Navy Blue Wave 1
Direction next lower degrees: Orange Wave 4
Details: Orange wave 2 appears completed; orange wave 3 is now in motion.
Wave cancel invalidation level: 122486
The Bovespa Index daily chart highlights a bullish impulsive structure developing. With the orange wave 2 correction finalized, the index has now moved into orange wave 3, which is part of the broader navy blue wave 1 formation. This current phase typically signals the strongest part of the trend, often marked by sharp price increases and high momentum.
Orange wave 3 usually serves as the most dynamic segment of an impulsive sequence. Following wave 2’s correction, wave 3 tends to drive prices higher at a rapid pace, frequently outpacing the gains made during wave 1. The chart indicates ongoing upward momentum, suggesting this rally has room to continue before facing the next correction.
The level at 122486 is key—it’s the wave count invalidation point. If price moves below this support, the current Elliott Wave structure would be reassessed. As long as the index stays above this threshold, the bullish count remains intact.
On the daily timeframe, this impulsive advance offers potential for further gains. Traders should look for wave 3 indicators such as consistent momentum and progressive price action, while closely monitoring the 122486 invalidation level. The technical setup favors bullish positions through this ongoing trend.
Price action signals and indicators like momentum and volume should be tracked for confirmation of this structure. With the index in navy blue wave 1 of a larger pattern, there’s room for extended upside. Traders may find strong continuation signals as this move progresses.
Once orange wave 3 finishes, orange wave 4 is expected to initiate a pullback. This future phase might offer an entry point before the bullish trend continues. Current conditions support trading in line with the trend during this strong wave 3 movement.
Bovespa Index Elliott Wave technical analysis
Function: Bullish Trend.
Mode: Impulsive.
Structure: Navy Blue Wave 1.
Position: Gray Wave 3.
Direction next lower degrees: Navy Blue Wave 1 (Started).
Details: Gray wave 2 appears completed; navy blue wave 1 of gray wave 3 is underway.
The Bovespa Index weekly chart highlights a bullish impulsive pattern in development. After completing the gray wave 2 correction, the index has now initiated navy blue wave 1 within the larger gray wave 3 structure. This setup indicates the beginning of a new upward impulse with the potential for sustained momentum in the weeks ahead.
Navy blue wave 1 typically marks the initial stage of a trend, building gradually as investor sentiment strengthens. Following the gray wave 2’s conclusion, wave 1 begins with steady, measured gains as the market establishes direction. This suggests continued upside potential before the next corrective wave appears.
The weekly chart offers a broader view of the structure, implying this could be the start of a medium-term bullish move. Entering gray wave 3 at a higher degree further supports expectations for increasing strength in the coming waves, positioning the current phase as a setup for longer-term growth.
Traders should look for signs of wave 1 development, including a consistent rise in volume and stable price advances. Although wave 1 may be less aggressive than wave 3, it serves as the critical foundation for the trend. Watching price action and indicator behavior will help confirm the evolving wave count.
After wave 1 concludes, navy blue wave 2 is expected to follow. This will likely offer a pullback opportunity before the anticipated stronger wave 3. The current wave structure emphasizes the importance of identifying this early trend formation through reliable technical signals.
Bovespa Index Elliott Wave technical analysis [Video]
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