IBEX 35 Index (Spain) Elliott Wave technical analysis [Video]

IBEX 35 (Spain) Wave technical analysis

• Function: Bullish Trend.

• Mode: Impulsive.

• Structure: Gray Wave 3.

• Position: Orange Wave 3.

• Next lower degree direction: Gray Wave 4.

• Wave cancel invalid level: 12036.

The daily chart of IBEX 35, Spain’s benchmark index, displays a strong bullish trend based on Elliott Wave principles. The current structure under analysis is gray wave 3, which is unfolding as part of the larger orange wave 3.

Gray wave 2 has completed its corrective movement, and the market is now advancing through gray wave 3, typically the most powerful and extended segment in an impulsive sequence. This suggests strong upside potential for IBEX 35.

Key level to watch

• Invalidation level: 12036.

  • A drop below this level would invalidate the current wave structure, requiring re-evaluation.

This phase offers optimal trading visibility, giving investors insight into the strength of the impulsive wave in progress. Once gray wave 3 concludes, a correction via gray wave 4 is expected before the continuation of the uptrend.

Wave degree alignment is crucial in this setup. Gray wave 3 is both an immediate trading event and a segment of the larger orange wave 3. Traders should look for signs of a strong impulse—rising volume, sharp price moves, and bullish momentum—as confirmation of the wave’s characteristics.

Trading insight

The current setup favors maintaining long positions in IBEX 35 while ensuring disciplined risk management near the invalidation level for capital protection.

IBEX 35 (Spain) Wave technical analysis

• Function: Bullish Trend.

• Mode: Impulsive.

• Structure: Orange Wave 3.

• Position: Navy Blue Wave 3.

• Next lower degree direction: Orange Wave 4.

• Wave cancel invalid level: 12036.

The weekly chart for IBEX 35, Spain’s leading stock index, illustrates a strong and ongoing bullish trend based on Elliott Wave analysis. The current wave structure in focus is orange wave 3, part of the broader navy blue wave 3.

With orange wave 2 now confirmed as complete, the index is progressing through orange wave 3, known for being one of the most dynamic and impulsive stages in the Elliott Wave sequence. This development signals strong upward potential for the index.

Key level to watch

• Invalidation level: 12036.

  • If the index drops below this level, it would invalidate the current bullish wave structure and require a revised outlook.

This weekly outlook offers a broad and strategic perspective for investors. As orange wave 3 develops within navy blue wave 3, the index appears to be in the middle of a strong upward phase. Momentum indicators such as rising volume and extended price movements will help confirm this bullish setup.

Wave degree relationships play a key role. The active orange wave 3 serves as both a medium-term trading signal and a component of a larger, long-term upward structure. Traders and investors should watch for typical impulse wave patterns during this expansion phase.

Trading insight

The analysis supports holding long positions in line with the dominant trend. Risk management remains vital, particularly around the 12036 level. The weekly chart provides essential visibility into both near-term opportunities and longer-term growth potential.

Technical Analyst: Malik Awais.

IBEX 35 (Spain) Wave technical analysis [Video]