The Euro Stoxx 50 daily chart reveals a bullish trend forming through an impulsive Elliott Wave setup. With gray wave 2 now completed, the index has entered navy blue wave 1, which is part of the larger gray wave 3 formation. This marks the start of a fresh impulsive leg with potential for sustained upward momentum in upcoming sessions.

Navy blue wave 1 represents the beginning of this upward trend. It typically reflects growing strength as market sentiment shifts positively. While this wave may initially show steady but moderate growth, it is a critical stage that establishes the foundation for the larger impulsive sequence. Current chart structure indicates continued upward development before the next corrective move appears.

The emergence of gray wave 3 at the higher degree points to the likelihood of stronger bullish waves following this initial leg. Therefore, the current move becomes important for positioning ahead of a more extended rally. The daily timeframe offers valuable context, highlighting the potential of the current impulse wave to build into broader market gains.

Market participants should closely monitor the progression of wave 1 for typical characteristics such as rising trading volume and a gradual, consistent price climb. The analysis supports preparing for bullish setups while recognizing wave 1 may develop more conservatively than later waves. Confirmation through technical indicators and market behavior remains essential as the structure progresses.

The next phase expected is navy blue wave 2, which will follow the completion of wave 1. This corrective movement may offer a pullback opportunity before a potentially more powerful wave 3 advance. Observing price patterns and momentum tools will help validate the wave progression and signal when wave 2 begins.

Euro Stoxx 50 Wave technical analysis

Function: Bullish Trend.

Mode: Impulsive.

Structure: Gray Wave 3.

Position: Orange Wave 3.

Direction next higher degrees: Gray Wave 3 (Started).

Details: Gray Wave 2 appears completed. Gray Wave 3 is now active.

The Euro Stoxx 50 weekly chart shows a strong bullish trend evolving within an impulsive Elliott Wave framework. With the gray wave 2 correction concluded, the index has now entered gray wave 3, which is part of the larger orange wave 3. This suggests that the market has moved into one of the most energetic segments of the overall uptrend, often marked by sharp price increases and robust momentum.

Gray wave 3 is typically the core segment of an Elliott impulse structure. It usually displays the most forceful price action and extends beyond wave 1 in both duration and magnitude. Now that wave 2 is completed, the technical setup favors a continuation of this upward movement with potentially significant gains before the market enters the next correction.

The weekly timeframe provides a strategic view of this emerging wave structure, underlining its importance within the larger bullish trend. With orange wave 3 also advancing at a higher degree, this phase may reflect a broader, long-term bullish move that spans multiple timeframes.

Traders should focus on traditional wave 3 signals such as strong volume, upward price strength, and consistent progression. This analysis supports holding bullish positions during this segment while staying alert for early signs of exhaustion. Technical indicators and price behavior will help confirm the ongoing development of this wave.

The following stage is anticipated to be gray wave 4, which will take shape once wave 3 concludes. This next wave is expected to be corrective, potentially presenting a pullback opportunity before further bullish movement resumes. Wave 3 phases often provide the best opportunity for trend-following strategies due to their favorable risk-reward dynamics.

Euro Stoxx 50 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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