Bovespa Index Elliott Wave Analysis – Trading Lounge
Bovespa Index – Day Chart
Elliott Wave Technical Analysis

FUNCTION: Bullish Trend
MODE: Impulsive
STRUCTURE: Orange Wave 3
POSITION: Navy Blue Wave 1
DIRECTION NEXT LOWER DEGREES: Orange Wave 4
DETAILS: Orange Wave 2 appears completed; Orange Wave 3 is currently in play.
WAVE CANCEL INVALIDATION LEVEL: 122486

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.

Bovespa Index – Weekly Chart

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.

Technical Analyst: Malik Awais

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