The Bovespa Index Elliott Wave Analysis on the daily chart indicates the market is currently in a counter-trend phase, characterized as corrective. The focus is on Orange Wave 2, positioned within Navy Blue Wave 3. This suggests the market is undergoing the second corrective wave within a larger third wave, often part of a larger trend.

The analysis suggests the next higher degree of movement will be Orange Wave 3. After the completion of the ongoing corrective phase (Orange Wave 2), the market is expected to transition into Orange Wave 3, typically associated with a strong impulsive move in line with the overall trend.

Notably, Orange Wave 1 appears complete, and Orange Wave 2 of 3 is now in play. This indicates the market has finished the initial impulsive wave (Orange Wave 1) and entered the corrective phase (Orange Wave 2) within the larger impulsive wave (Navy Blue Wave 3). The completion of Wave 1 suggests a new market direction has been established, and the current Wave 2 is a temporary pullback before the trend resumes in Wave 3.

The wave cancellation invalid level is set at 118574.97. This level is crucial as it serves as a validation point for the current wave structure. If the market price drops below this level, it would invalidate the current wave analysis, indicating that the expected wave pattern is no longer applicable, and a revision of the analysis would be necessary.

In summary, the Bovespa Index daily chart analysis shows the market is in a counter-trend corrective phase within Orange Wave 2, positioned in Navy Blue Wave 3. The market has completed Orange Wave 1 and is now in the corrective phase of Orange Wave 2. Following this phase, the market is expected to transition into Orange Wave 3, continuing the primary trend. The wave cancel invalid level is 118574.97, serving as a critical threshold for the validation of the current wave analysis.

Bovespa Index Elliott Wave weekly chart

Function: Trend.

Mode: Impulsive.

Structure: Navy Blue Wave 3.

Position: Gray Wave 3.

Direction next lower degrees: Navy Blue Wave 4.

The Bovespa Index Elliott Wave Analysis on the weekly chart indicates the market is currently in a trend phase, characterized as impulsive. The wave structure being analyzed is Navy Blue Wave 3, positioned within Gray Wave 3. This suggests the market is undergoing the third wave of a larger third wave, typically representing a strong and extended move in the direction of the trend.

The analysis points out that the next lower degree of movement will be Navy Blue Wave 4. After the completion of the ongoing impulsive phase (Navy Blue Wave 3), the market is expected to enter Navy Blue Wave 4, typically a corrective phase following an impulsive wave.

A significant detail in this analysis is that Navy Blue Wave 2 is considered complete, and Navy Blue Wave 3 of 3 is now in play. This indicates the market has finished the second corrective wave (Navy Blue Wave 2) and has entered the third impulsive wave (Navy Blue Wave 3) within the larger impulsive wave (Gray Wave 3). The completion of Wave 2 suggests the market has resumed its primary trend, and the current Wave 3 is expected to be a strong continuation of this trend.

The wave cancellation invalid level is set at 118574.97. This level is crucial as it serves as a validation point for the current wave structure. If the market price drops below this level, it would invalidate the current wave analysis, indicating the expected wave pattern is no longer applicable, necessitating a revision of the analysis.

In summary, the Bovespa Index weekly chart analysis shows the market is in an impulsive trend phase within Navy Blue Wave 3, positioned in Gray Wave 3. The market has completed Navy Blue Wave 2 and is now in the impulsive phase of Navy Blue Wave 3. Following this phase, the market is expected to enter Navy Blue Wave 4, a corrective phase. The wave cancel invalid level is 118574.97, serving as a critical threshold for the validation of the current wave analysis.

Bovespa Index Elliott Wave technical analysis [Video]

Author

Peter Mathers

TradingLounge

Peter Mathers started actively trading in 1982. He began his career at Hoei and Shoin, a Japanese futures trading company.

EUR/USD holds firm above 1.1900 as US NFP looms

EUR/USD holds its upbeat momentum above 1.1900 in the European trading hours on Wednesday, helped by a broadly weaker US Dollar. Markets could turn cautious later in the day as the delayed US employment report for January will takes center stage.

GBP/USD recovers losses despite rising UK political risks, BoE rate cut bets

Pound Sterling advances against the US Dollar after registering modest losses in the previous session, trading around 1.3650 during the Asian hours on Wednesday. The pair could extend losses as the Pound Sterling faces pressure from rising political risks in the UK and growing expectations of near-term Bank of England rate cuts.

Gold sticks to gains near $5,050 as focus shifts to US NFP

Gold holds moderate gains near the $5,050 level in the European session on Wednesday, reversing a part of the previous day's modest losses amid dovish US Federal Reserve-inspired US Dollar weakness. This, in turn, is seen as a key factor acting as a tailwind for the non-yielding yellow metal ahead of the critical US NFP release.

US Nonfarm Payrolls expected to show modest job gains in January

The United States Bureau of Labor Statistics will release the delayed Nonfarm Payrolls data for January on Wednesday at 13:30 GMT. Investors expect NFP to rise by 70K following the 50K increase recorded in December.

S&P 500 at 7,000 is a valuation test, not a liquidity problem

The rebound from last week’s drawdown never quite shook the sense that it was being supported by borrowed conviction. The S&P 500 once again tested near the 7,000 level (6,986 as the high watermark) and failed, despite a macro backdrop that would normally be interpreted as supportive of risk.

BNB prolonged correction signals deeper bearish momentum

BNB (BNB), formerly known as Binance Coin, is trading below $618 on Wednesday, marking the sixth consecutive day of correction since the weekend. The bearish price action is further supported by rising short bets alongside negative funding rates in the derivatives market.