The daily chart indicates a strong bullish trend for the Bovespa Index, with current activity centered in Orange Wave 3, within a larger structure of Navy Blue Wave 1. The conclusion of Orange Wave 2 marks the beginning of what is typically the most dynamic phase in an Elliott Wave sequence.

This phase shows significant buying interest, reflecting a strong impulsive move. The index appears well-positioned for further upward momentum. A breach below 122486 would invalidate this wave count and suggest a reevaluation may be needed.

This structure offers important insights for investors on potential market expansion. Orange Wave 4, a corrective phase, is expected to follow this rally. Participants should monitor for bullish continuation signs and manage positions carefully as the wave matures.

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 2.

Details: Gray Wave 2 appears completed; Navy Blue Wave 1 of 3 is currently in motion..

Wave cancel invalidation level: 122486.

The weekly chart analysis of Brazil’s Bovespa Index maintains a bullish outlook. Navy Blue Wave 1 is now unfolding within Gray Wave 3, reflecting the completion of Gray Wave 2 and the initiation of a new upward leg.

This impulsive structure shows notable strength and indicates a foundational phase for a potentially long-lasting rally. As long as the price holds above 122486, the wave count remains valid.

This broader framework suggests Bovespa is likely at the beginning of an extended uptrend. Following this wave, Navy Blue Wave 2, a corrective sequence, is expected. Investors should watch for continuation signals and be prepared to adjust if the invalidation level is breached.

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.

Markets move fast. We move first.

Orange Juice Newsletter brings you expert driven insights - not headlines. Every day on your inbox.

Editor's Picks

EUR/USD moves sideways below 1.1800 on Christmas Eve

EUR/USD struggles to find direction and trades in a narrow channel below 1.1800 after posting gains for two consecutive days. Bond and stock markets in the US will open at the usual time and close early on Christmas Eve, allowing the trading action to remain subdued.

GBP/USD keeps range around 1.3500 amid quiet markets

GBP/USD keeps its range trade intact at around 1.3500 on Wednesday. The Pound Sterling holds the upper hand over the US Dollar amid pre-Christmas light trading as traders move to the sidelines heading into the holiday season.

Gold retreats from record highs, trades below $4,500

Gold retreats after setting a new record-high above $4,520 earlier in the day and trades in a tight range below $4,500 as trading volumes thin out ahead of the Christmas break. The US Dollar selling bias remains unabated on the back of dovish Fed expectations, which continues to act as a tailwind for the bullion amid persistent geopolitical risks.

Bitcoin slips below $87,000 as ETF outflows intensify, whale participation declines

Bitcoin price continues to trade around $86,770 on Wednesday, after failing to break above the $90,000 resistance. US-listed spot ETFs record an outflow of $188.64 million on Tuesday, marking the fourth consecutive day of withdrawals.

Economic outlook 2026-2027 in advanced countries: Solidity test

After a year marked by global economic resilience and ending on a note of optimism, 2026 looks promising and could be a year of solid economic performance. In our baseline scenario, we expect most of the supportive factors at work in 2025 to continue to play a role in 2026.

Avalanche struggles near $12 as Grayscale files updated form for ETF

Avalanche trades close to $12 by press time on Wednesday, extending the nearly 2% drop from the previous day. Grayscale filed an updated form to convert its Avalanche-focused Trust into an ETF with the US Securities and Exchange Commission.