DJI Index Elliott Wave technical analysis [Video]

Dow Jones – 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 in progress.

Wave cancel/invalidation level: 36,642.

The daily chart review of the Dow Jones Industrial Average shows a bullish market supported by impulsive price action. Currently, navy blue wave one is developing within the broader upward movement of gray wave three. This pattern indicates gray wave two has concluded, allowing the index to transition into a new impulsive phase. Navy blue wave one represents the early leg of gray wave three, pointing to the possibility of a notable price advance.

The next movement expected at lower degrees is navy blue wave two, a corrective phase likely to follow wave one’s completion. The confirmation of gray wave two’s end signals the start of a fresh bullish cycle. A key technical level at 36,642 has been marked for wave count invalidation. Should the index fall below this level, it may suggest a more complex correction or a potential trend reversal.

The impulsive behavior currently exhibited implies strong buying activity is propelling the market. Traders should observe navy blue wave one’s progress to gauge when wave two might initiate. This daily chart view offers essential insights into the index’s position within its longer-term bullish cycle. The structure implies that further upward movement is probable before any meaningful correction. Traders should confirm trend continuation and be cautious of any invalidation signals that could alter the current outlook.

Dow Jones – DJI Elliott Wave technical analysis

Function: Bullish Trend.

Mode: Impulsive.

Strucutre: Gray wave 3.

Position: Orange wave 3.

Direction next higher degrees: Gray wave 3 (active).

Details: Gray wave 2 appears completed; gray wave 3 has now begun..

Wave cancel/invalidation level: 36,642.

The weekly chart review of the Dow Jones Industrial Average reflects a strong bullish trend supported by impulsive wave characteristics. The index is currently in gray wave three, a part of the larger bullish sequence that falls under orange wave three. This transition follows the likely completion of gray wave two and marks the onset of an expansive upward move. Given its placement in gray wave three—a typically powerful leg in the Elliott Wave cycle—the index shows high potential for further gains.

The next projection within this framework is the continued progression of gray wave three inside the broader orange wave three. A technical invalidation level has been set at 36,642. A move below this point would nullify the present wave count and could signal a more complex or bearish scenario. The impulsive nature of the wave suggests institutional buying is supporting the rally, and the weekly timeframe implies that the current bullish trend may continue for a significant period.

Traders are advised to track the wave structure closely for signals confirming the ongoing impulse. Sub-wave completions within gray wave three will be key to determining the trend's durability. Maintaining a position above 36,642 is vital to upholding the bullish forecast. This analysis offers a long-term view of the Dow’s bullish phase and serves as a guide for both opportunity and risk management in this trend cycle.

DJI Index Elliott Wave technical analysis [Video]