DOW JONES - DJI Elliott Wave Analysis (Day Chart)
DOW JONES - DJI Elliott Wave Technical Analysis
The DOW JONES (DJI) Elliott Wave Analysis on the daily chart shows a counter-trend scenario, currently in a corrective phase. The primary structure under analysis is orange wave 2, which is actively progressing. Orange wave 1 has already completed, marking the start of the corrective phase represented by orange wave 2.
The market is presently situated within navy blue wave 5, forming part of a larger wave structure. It is anticipated that orange wave 2 is approaching its conclusion, with a likely transition into orange wave 3 soon. This transition signals that, following the current corrective phase, the index could resume its impulsive upward trend, in line with the broader wave structure.
The analysis suggests that the current counter-trend phase, which has temporarily interrupted the overall bullish trend, is nearly complete. The next major movement is expected to be an upward shift, as the market transitions into orange wave 3. This phase aligns with the continuation of the long-term bullish trend for the DOW JONES index.
Key Technical Levels: The wave invalidation point is positioned at 38,474.41. Should the market drop below this level, the existing Elliott Wave structure will be invalidated, requiring a fresh assessment of the wave count and market outlook.
Summary: The DOW JONES index is nearing the end of its corrective phase, with orange wave 2 expected to finish soon. The next expected movement is a bullish continuation, as orange wave 3 begins, potentially driving upward momentum for the index after the current correction.
DOW JONES - DJI Elliott Wave Analysis (Weekly Chart)
DOW JONES - DJI Elliott Wave Technical Analysis
The DOW JONES (DJI) Elliott Wave Technical Analysis on the weekly chart indicates a trending phase, characterized by an impulsive mode. The primary structure is navy blue wave 5, signaling the continuation of the upward trend, with the market currently positioned in gray wave 1. This upward movement is part of the larger Elliott Wave structure.
Navy blue wave 4 is considered complete, and navy blue wave 5 is unfolding. This stage indicates further upward movement, following the end of wave 4. The current position in gray wave 1 signals the start of a new impulsive wave, with gray wave 2, a corrective phase, expected to follow once the current upward movement completes. Gray wave 2 is anticipated to bring a temporary correction before the bullish trend potentially resumes.
The analysis highlights an invalidation level at 38,474.41. If the market falls below this level, the current Elliott Wave structure will be rendered invalid, necessitating a reassessment of the wave count and outlook. However, as long as the market stays above this level, the upward trend within navy blue wave 5 is expected to persist.
Summary: The DOW JONES index remains in a bullish trend, currently progressing within navy blue wave 5, after the completion of wave 4. The market is now positioned in gray wave 1, with gray wave 2 expected to follow as a corrective phase. The invalidation level remains at 38,474.41, with staying above this level supporting the continuation of the upward trend.
Technical Analyst: Malik Awais
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