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.

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