Shanghai Composite Elliott Wave technical analysis
Technical analysis overview
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Function: Trend.
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Mode: Impulsive.
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Structure: Gray Wave 3.
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Position: Orange Wave 3.
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Next Higher Degree Direction: Gray Wave 3 (Started).
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Wave Cancellation Invalid Level: 3135.1395.
Analysis details
The Shanghai Composite Elliott Wave Analysis for the day chart highlights a trending market, with the current mode being impulsive. The wave structure is identified as gray wave 3, forming part of a larger upward movement within orange wave 3. This suggests that the market is experiencing a strong bullish phase, characteristic of an impulsive wave structure.
The next expected higher-degree move is the continuation of gray wave 3, which has already begun and is likely to push the market further upward, aligning with the larger trend.
The analysis suggests that gray wave 2 has likely concluded, and the market is now advancing through gray wave 3, which is expected to maintain strong bullish momentum. Traders should closely monitor this wave’s progress, as its completion will mark a key turning point in the market cycle. This will provide insights into the timing and direction of the next higher-degree wave.
Key level to watch
A critical price level to monitor is the wave cancellation invalid level at 3135.1395. If the price falls below this level, the current wave count would be invalidated, requiring a reassessment of the market structure. This level acts as key support, and its breach could indicate a trend shift or a change in the wave pattern.
Conclusion
The Shanghai Composite is currently in a trending market, with gray wave 3 now in play following the completion of gray wave 2. This impulsive movement is part of orange wave 3, and the next significant move is expected to be the continuation of gray wave 3.
Traders should closely track the development of gray wave 3, as it will provide valuable insights into the timing and direction of the next higher-degree wave. The analysis highlights the importance of understanding wave structures to anticipate potential market movements and adjust trading strategies accordingly.
Shanghai Composite Elliott Wave technical analysis
Technical analysis overview
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Function: Trend.
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Mode: Impulsive.
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Structure: Orange Wave 3.
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Position: Navy Blue Wave 3.
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Next higher degree direction: Orange Wave 3 (Started).
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Wave cancellation invalid level: 3135.1395.
Analysis details
The Shanghai Composite Elliott Wave Analysis for the weekly chart highlights a trending market, with the current mode being impulsive. The wave structure is identified as orange wave 3, forming part of a larger upward movement within navy blue wave 3. This indicates that the market is experiencing a strong bullish phase, characteristic of an impulsive wave structure.
The next expected higher-degree move is the continuation of orange wave 3, which has already begun and is likely to push the market further upward, aligning with the larger trend.
The analysis suggests that orange wave 2 has likely concluded, and the market is now advancing through orange wave 3, which is expected to maintain strong bullish momentum. Traders should closely monitor this wave’s progress, as its completion will mark a key turning point in the market cycle. This will provide insights into the timing and direction of the next higher-degree wave.
Key level to watch
A critical price level to monitor is the wave cancellation invalid level at 3135.1395. If the price falls below this level, the current wave count would be invalidated, requiring a reassessment of the market structure. This level acts as key support, and its breach could indicate a trend shift or a change in the wave pattern.
Conclusion
The Shanghai Composite is currently in a trending market, with orange wave 3 now in play following the completion of orange wave 2. This impulsive movement is part of navy blue wave 3, and the next significant move is expected to be the continuation of orange wave 3.
Traders should closely track the development of orange wave 3, as it will provide valuable insights into the timing and direction of the next higher-degree wave. The analysis emphasizes the importance of understanding wave structures to anticipate potential market movements and adjust trading strategies accordingly.
Shanghai Composite Index Elliott Wave technical analysis [Video]
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