IBEX 35 (Spain) Elliott Wave Analysis – Trading Lounge Day Chart
IBEX 35 (Spain) Wave Technical Analysis

FUNCTION: Counter Trend
MODE: Corrective
STRUCTURE: Orange Wave 2
POSITION: Navy Blue Wave 3
DIRECTION NEXT HIGHER DEGREES: Orange Wave 3
DETAILS: Orange wave 1 appears complete; orange wave 2 is now active

The IBEX 35 daily chart shows a corrective setup within a broader bullish context. The price action is currently forming orange wave 2, following the completion of orange wave 1. This represents a typical retracement, signaling a short-term pause within the larger trend captured in navy blue wave 3.

This retracement phase, orange wave 2, often results in sideways movement or mild pullbacks before trend continuation. Once this correction ends, the index is expected to begin orange wave 3, resuming its primary upward trajectory.

Traders should watch for orange wave 2 to finalize, as this will signal the potential start of the next bullish movement in orange wave 3. This setup remains part of a corrective phase within an overall upward trend.

IBEX 35 (Spain) Elliott Wave Analysis – Trading Lounge Weekly Chart
IBEX 35 (Spain) Wave Technical Analysis

FUNCTION: Bullish Trend
MODE: Impulsive
STRUCTURE: Navy Blue Wave 3
POSITION: Gray Wave 3
DIRECTION NEXT LOWER DEGREES: Navy Blue Wave 4
DETAILS: Navy blue wave 2 appears complete; navy blue wave 3 is developing

The weekly chart analysis confirms a bullish trend for IBEX 35, with price action in impulsive mode. The current structure marks navy blue wave 3 forming part of a larger movement within gray wave 3. This wave phase usually brings the strongest market momentum.

With navy blue wave 2 having completed its correction, navy blue wave 3 is now unfolding. This wave is typically the longest and most dynamic of the Elliott Wave sequence, offering solid directional movement and minimal retracement.

Given this formation, IBEX 35 may continue to rise significantly as navy blue wave 3 progresses. The next expected correction—navy blue wave 4—will likely follow only after navy blue wave 3 nears completion. Institutional buying pressure appears strong, favoring further gains in the near term.

Technical Analyst: Malik Awais

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