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Bovespa Index – Daily Chart

Bovespa Elliott Wave Technical Analysis

FUNCTION: Bullish Trend

MODE: Impulsive

STRUCTURE: Orange Wave 3

POSITION: Navy Blue Wave 1

NEXT DIRECTION (LOWER DEGREES): Orange Wave 4

DETAILS: Orange wave 2 appears complete; orange wave 3 now developing

WAVE CANCEL/INVALID LEVEL: 122486

Market Overview and Current Positioning

The Bovespa Index daily analysis indicates a bullish market structure driven by impulsive movement. The current development features orange wave 3 unfolding within a larger bullish trend identified as navy blue wave 1. Following the completion of orange wave 2, this phase typically marks the strongest upward movement in an impulsive sequence.

Traders can expect continued buying pressure during this wave, signaling sustained momentum. This wave structure is in line with early-stage bullish trends and reflects strong upward sentiment.

Upcoming Wave Expectations

After the completion of orange wave 3, a corrective wave – orange wave 4 – is projected to follow in the lower degrees. This would present a temporary pause within the broader uptrend. The invalidation level is set at 122486. If breached, this would invalidate the current bullish count and require a reevaluation of the market direction.

Until then, the market outlook remains positive. The impulsive trend mode suggests upward movement is likely to continue until wave 3 finishes.

Trading Strategy and Risk Management

This wave count provides a structured technical framework for traders to identify potential entry points and manage risk accordingly. With wave 3 active and wave 4 ahead, market participants should monitor for signs of trend progression and prepare for potential pullbacks that offer new buying setups within the prevailing uptrend.

Bovespa Index – Weekly Chart

Bovespa Elliott Wave Technical Analysis

FUNCTION: Bullish Trend

MODE: Impulsive

STRUCTURE: Navy Blue Wave 1

POSITION: Gray Wave 3

NEXT DIRECTION (LOWER DEGREES): Navy Blue Wave 1 (in progress)

DETAILS: Gray wave 2 appears complete; navy blue wave 1 of gray wave 3 is now underway

WAVE CANCEL/INVALID LEVEL: 122486

Weekly Market Structure Analysis

The Bovespa Index weekly chart outlines a strong bullish trend supported by impulsive price action. The current wave structure shows navy blue wave 1 progressing within the broader framework of gray wave 3. This follows the completion of gray wave 2, confirming that a new bullish phase is now in motion.

With the initiation of navy blue wave 1, the market has entered a key advancing stage. This wave generally represents the beginning of a larger upward trend, suggesting increased buying activity and momentum.

Forecast and Wave Progression

The next phase involves the continuation of navy blue wave 1, a key part of gray wave 3. Traders should note the invalidation level set at 122486 – a break below this threshold would negate the current wave count and call for a revised outlook.

As long as this level holds, the bullish trend is expected to remain intact. The impulsive pattern supports potential for extended upward movement, reflecting strong market sentiment.

Trading Strategy and Market Outlook

This weekly analysis gives a long-term view of the market, showing that the uptrend is still in its early stages. The wave count provides a roadmap for identifying opportunities and managing risks. As navy blue wave 1 develops, the focus remains on upward progression with attention on the 122486 invalidation level as a critical support zone.

Technical Analyst: Malik Awais

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