Nasdaq Elliott Wave Analysis – Trading Lounge Day Chart
Nasdaq Elliott Wave Technical Analysis

• Function: Counter Trend
• Mode: Impulsive as Wave C
• Structure: Gray Wave C
• Position: Orange Wave 4
• Direction (Next Higher Degrees): Orange Wave 5
• Details: Gray Wave B appears completed; now, Gray Wave C of 4 is active

Daily Chart Overview:
The Nasdaq daily Elliott Wave analysis offers a counter-trend outlook with bullish potential. The current pattern is a complex correction, where Gray Wave C is unfolding within the larger Orange Wave 4 correction. According to the analysis, Gray Wave B's corrective action has concluded, and the index is now moving upward as part of Gray Wave C of 4. This stage signals that the index could be nearing the final phase of a broader corrective wave before returning to its primary trend.

Wave Structure Insight:
This counter-trend formation features impulsive traits typical of Wave C behavior within corrective phases. The daily chart is optimal for viewing this evolving structure, allowing traders to assess the Nasdaq’s exact place in the broader wave sequence. Once Gray Wave C of Orange Wave 4 finishes, Orange Wave 5 is expected to begin—an impulsive wave that may resume the prevailing market direction.

Technical Note:
This analysis highlights the significance of wave degree interaction, positioning Gray Wave C as a crucial short-term movement as well as a key piece of the ongoing Orange Wave 4 correction. Traders should closely examine the development of a typical five-wave structure in Gray Wave C, a common ending signal in corrections. The recommendation is to await pattern confirmation before planning any substantial trading moves in the Nasdaq index.

Nasdaq Elliott Wave Analysis – Trading Lounge Weekly Chart
Nasdaq Elliott Wave Technical Analysis

• Function: Counter Trend
• Mode: Corrective
• Structure: Orange Wave 4
• Position: Navy Blue Wave 1
• Direction (Next Higher Degrees): Orange Wave 5
• Details: Orange Wave 3 appears complete; Orange Wave 4 is now active

Weekly Chart Overview:
The current Nasdaq Elliott Wave analysis suggests the index is undergoing a corrective phase, specifically within Orange Wave 4, following the completion of Orange Wave 3. This phase represents a short-term counter-trend movement and indicates a temporary pullback before the market resumes its broader trend.

Wave Structure Insight:
Orange Wave 4’s unfolding pattern is part of the necessary cycle within Elliott Wave theory. Navy Blue Wave 1 is also noted, which provides a clearer understanding of the larger trend context. As the correction progresses, the formation sets the stage for the beginning of Orange Wave 5, expected to lead the market higher.

Technical Note:
This analysis offers insight into both current and anticipated movements in the Nasdaq index. Recognizing where the index stands in the wave count enables traders to anticipate market sentiment shifts and strategize accordingly. The completion of Orange Wave 4 is anticipated to mark the transition into an impulsive move under Orange Wave 5, aligning with the broader upward trend.

Conclusion:
Nasdaq is currently within a corrective stage, identified as Orange Wave 4. Once this phase concludes, the market is likely to enter Orange Wave 5, indicating a potential upward move. Elliott Wave theory helps traders make informed decisions by identifying these structured phases in market behavior.

Technical Analyst: Malik Awais

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