ASX: BLOCK, INC – XYZ (SQ2)

Elliott Wave Technical Analysis – TradingLounge

Today's Elliott Wave analysis provides an updated view of BLOCK, INC – XYZ (SQ2) on the Australian Stock Exchange (ASX).

We are observing a potential market bottom forming around 61.42, marking the completion of a five-wave decline. Currently, wave 1) – orange appears near completion, setting the stage for wave 2) – orange to move lower. Once this corrective wave concludes, it may pave the way for a rally into wave 3) – orange.

ASX: BLOCK, INC – XYZ (SQ2)
1D Chart (Semilog Scale) Analysis

• Function: Intermediate Trend
• Mode: Motive
• Structure: Impulse
• Position: Wave 1) – orange
• Invalidation Point: 61.42

We suspect a low at 61.42 could signify the end of a complete five-wave decline from the high at 154.72. If this scenario holds, we anticipate a minor pullback in wave 2) – orange, followed by the start of a bullish wave 3) – orange. Confirmation of this will depend on whether wave 2) – orange successfully concludes without breaking the invalidation level.

4-Hour Chart Analysis:

• Function: Intermediate Trend
• Mode: Motive
• Structure: Impulse
• Position: Wave 1) – orange
• Invalidation Point: 61.42

Similar to the daily chart, the four-hour view supports the theory that the market has possibly bottomed at 61.42. From there, the price may resume upward movement, contingent on the end of wave 2) – orange. Once this wave completes, the path toward a bullish wave 3) – orange becomes more probable.

Conclusion:
Our Elliott Wave forecast for BLOCK, INC – XYZ (SQ2) provides a technical outlook based on wave patterns and potential pivot levels. The 61.42 level remains key as a critical invalidation point. Monitoring the transition from wave 2) – orange to wave 3) – orange will be vital in gauging the strength of the upcoming trend.

Technical Analyst: Hua (Shane) Cuong, CEWA-M (Master’s Designation)

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