Elliott Wave Technical Analysis: Euro Stoxx 50 Index

By Peter Mathers of TradingLounge

Thursday, July 11, 2024 6:00 AM EDT

macbook pro on black table

Image Source: Unsplash

Euro Stoxx 50 Elliott Wave Analysis - Daily Chart

Overview

The Euro Stoxx 50 Elliott Wave analysis on the daily chart focuses on a counter trend within a corrective mode.

Trend Identification

Function: Counter Trend
Mode: Corrective
Structure: Orange wave 4
Position: Navy blue wave 3

Current Analysis

Details: Orange wave 4 is still in play as a sideways movement.
Invalidation Level: 4618

Key Points

Corrective Counter Trend: The analysis identifies the trend as corrective, indicating a consolidation phase against the main trend.
Wave Structure: The focus is on orange wave 4 within the Elliott Wave structure. The current position is within navy blue wave 3, indicating a corrective phase.
Next Phase: The next expected phase in the wave structure is orange wave 5, which may resume the primary trend or continue the correction.

Detailed Analysis

Sideways Movement: Orange wave 4 is characterized by sideways movement, indicating a lack of clear directional bias and range-bound market behavior.
Wave 4 Characteristics: The ongoing orange wave 4 signifies a period of fluctuation without a strong upward or downward trend.
Invalidation Level: The wave cancel invalid level is set at 4618. If the market price surpasses this level, the current wave analysis would be invalid, indicating a significant market shift.

Conclusion

The Euro Stoxx 50 daily chart analysis identifies a counter trend within the Elliott Wave framework. The market is currently in the corrective phase of orange wave 4 within navy blue wave 3, marked by sideways movement. This phase is ongoing, with the next phase being orange wave 5. The invalidation level at 4618 is crucial for confirming the current wave structure.

Euro Stoxx 50 Elliott Wave Analysis - Weekly Chart

Overview

The Euro Stoxx 50 Elliott Wave analysis on the weekly chart focuses on a strong trend within an impulsive mode.

Trend Identification

Function: Trend
Mode: Impulsive
Structure: Navy blue wave 3
Position: Gray wave 3

Current Analysis

Details: Navy blue wave 3 is currently in play.
Invalidation Level: 4618

Key Points

Impulsive Trend: The analysis identifies the trend as impulsive, indicating strong directional movements.
Wave Structure: The focus is on navy blue wave 3 within the Elliott Wave structure, positioned within gray wave 3, suggesting a robust upward trend.
Next Phase: The next expected phase in the wave structure is navy blue wave 4, which typically represents a corrective phase.

Detailed Analysis

Navy Blue Wave 3: This wave is characterized by strong upward movement, indicative of a robust market trend.
Next Expected Phase: Navy blue wave 4 is anticipated to follow, marking a corrective phase with possible retracement against the prevailing trend before resuming the upward movement.
Invalidation Level: The wave cancel invalid level is set at 4618. If the market price surpasses this level, the current wave analysis would be invalid, indicating significant market changes.

Conclusion

The Euro Stoxx 50 weekly chart analysis highlights an impulsive trend within the Elliott Wave framework. The market is currently in the upward phase of navy blue wave 3 within gray wave 3, showing strong bullish momentum. The next phase is expected to be navy blue wave 4, involving a corrective retracement. The invalidation level at 4618 is critical for confirming the current wave structure.