RUSSELL 2000 Elliott Wave Analysis - Trading Lounge Day Chart
RUSSELL 2000 Elliott Wave Technical Analysis
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FUNCTION: Trend
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MODE: Impulsive
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STRUCTURE: Gray wave 3
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POSITION: Orange wave 3
- DIRECTION NEXT HIGHER DEGREES: Gray wave 3 (in progress)
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DETAILS: Gray wave 2 has likely finished, and now gray wave 3 is actively driving the market higher.
- Wave Cancel Invalid Level: 203.76
The Russell 2000 daily chart shows the market in an impulsive trend, pointing to strong directional momentum. The current wave structure under analysis is gray wave 3, which represents the third and usually most aggressive phase in the Elliott Wave sequence. This phase generally follows a correction and is known for strong price movement.
With gray wave 2 completed, gray wave 3 is now unfolding. The alignment of orange wave 3 within the broader wave structure supports that the market remains in an impulsive trend. This combination of wave 3s at both the gray and orange levels reinforces expectations for continued upward movement.
Additionally, gray wave 3, which is the next higher degree, also points upwards, confirming the market's overall bullish trajectory. The alignment of multiple wave degrees in the same direction typically strengthens confidence in the trend's continuation. Gray wave 3 is often regarded as one of the strongest in the Elliott Wave cycle, suggesting the market may push higher in the near term.
The analysis also highlights the critical invalidation level at 203.76. If the market drops below this level, the current wave count would be invalidated, indicating the anticipated upward move may not materialize.
In summary, the Russell 2000 is in an impulsive trend on the daily chart, with gray wave 3 in progress after the completion of gray wave 2. The market is likely to continue moving upward unless the 203.76 invalidation level is breached.
RUSSELL 2000 Elliott Wave Analysis - Trading Lounge 4-Hour Chart
RUSSELL 2000 Elliott Wave Technical Analysis
The Russell 2000 weekly chart indicates the market is in an impulsive trend, signaling strong upward momentum. The current wave structure under review is orange wave 3, which typically represents a powerful and extended phase in the Elliott Wave cycle, following the corrective orange wave 2.
As orange wave 3 has already begun, upward momentum in line with the impulsive nature of this wave is expected. Navy blue wave 3, a subwave within orange wave 3, confirms that the market's upward trajectory remains intact.
The higher-degree wave direction also follows orange wave 3, suggesting continued impulsive movement across multiple wave levels. This alignment strengthens the likelihood of further market gains and sustains the bullish trend. When wave counts across different degrees align in the same direction, it often signals a robust and reliable trend.
The analysis highlights a critical invalidation level at 203.76. If the market falls below this point, the current Elliott Wave count would be invalid, possibly indicating a reversal or change in the anticipated direction.
In summary, the Russell 2000 weekly chart reflects an impulsive trend with orange wave 3 in progress after orange wave 2. Upward momentum is expected to continue unless the 203.76 invalidation level is breached.
Technical Analyst: Malik Awais
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