The daily chart reveals strong bullish momentum in the Dow Jones Industrial Average, progressing within an established uptrend. The current Elliott Wave configuration highlights the development of orange wave three inside a broader bullish structure labeled navy blue wave one. With the completion of orange wave two, the market has entered what is typically the most aggressive phase of an impulsive wave.

The analysis confirms the conclusion of orange wave two, setting the stage for the ongoing advance of wave three. The impulsive characteristics indicate strong institutional buying pressure, supporting the potential for further upside. A break below 36642 would invalidate the current wave count and may suggest a deeper correction or structural reassessment.

This wave structure provides traders with a bullish outlook, placing the index in a highly favorable phase for trend-followers. The next anticipated move in the lower degree will be orange wave four—a corrective retracement expected after the current bullish impulse. Traders should monitor for continuation signals while adjusting risk as the current rally matures.

DJI 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 complete. Navy Blue Wave 1 of 3 is now underway.

Invalidation level: 36642.

The weekly chart offers a strong bullish outlook for the Dow Jones Industrial Average, reflecting an impulsive structure with navy blue wave one forming within a larger gray wave three. With gray wave two now completed, the index is entering a new upward phase, suggesting a long-term rally may be in its early stages.

The wave count validates the start of navy blue wave one, with solid buying momentum pushing prices higher. The longer-term weekly view suggests that this bullish phase could extend for weeks or months. A key invalidation point at 36642 serves as the line in the sand; a break below this could indicate a need to reassess the wave count.

This Elliott Wave setup frames the Dow Jones within the early stages of a potentially extended advance. The expected follow-up move is navy blue wave two—a corrective wave to follow the initial upward impulse. Investors should watch for wave confirmations and protect positions near the critical invalidation level while preparing for longer-term bullish developments.

Technical analyst: Malik Awais.

DJI 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 hits two-day highs near 1.1820

EUR/USD picks up pace and reaches two-day tops around 1.1820 at the end of the week. The pair’s move higher comes on the back of renewed weakness in the US Dollar amid growing talk that the Fed could deliver an interest rate cut as early as March. On the docket, the flash US Consumer Sentiment improves to 57.3 in February.

GBP/USD reclaims 1.3600 and above

GBP/USD reverses two straight days of losses, surpassing the key 1.3600 yardstick on Friday. Cable’s rebound comes as the Greenback slips away from two-week highs in response to some profit-taking mood and speculation of Fed rate cuts. In addition, hawkish comments from the BoE’s Pill are also collaborating with the quid’s improvement.

Gold climbs further, focus is back to 45,000

Gold regains upside traction and surpasses the $4,900 mark per troy ounce at the end of the week, shifting its attention to the critical $5,000 region. The move reflects a shift in risk sentiment, driving flows back towards traditional safe haven assets and supporting the yellow metal.

Crypto Today: Bitcoin, Ethereum, XRP rebound amid risk-off, $2.6 billion liquidation wave

Bitcoin edges up above $65,000 at the time of writing on Friday, as dust from the recent macro-triggered sell-off settles. The leading altcoin, Ethereum, hovers above $1,900, but resistance at $2,000 caps the upside. Meanwhile, Ripple has recorded the largest intraday jump among the three assets, up over 10% to $1.35.

Three scenarios for Japanese Yen ahead of snap election

The latest polls point to a dominant win for the ruling bloc at the upcoming Japanese snap election. The larger Sanae Takaichi’s mandate, the more investors fear faster implementation of tax cuts and spending plans.

XRP rally extends as modest ETF inflows support recovery

Ripple is accelerating its recovery, trading above $1.36 at the time of writing on Friday, as investors adjust their positions following a turbulent week in the broader crypto market. The remittance token is up over 21% from its intraday low of $1.12.