Swiss Market Index Elliott Wave Analysis – Trading Lounge Day Chart
Swiss Market Index Elliott Wave Technical Analysis
FUNCTION: Counter Trend
MODE: Corrective
STRUCTURE: Gray wave 2
POSITION: Orange wave 3
DIRECTION NEXT HIGHER DEGREES: Gray wave 3
DETAILS: Gray wave 1 is complete, and gray wave 2 is now active.
Wave Cancel Invalidation Level: 11,419.25
The Swiss Market Index (SMI) Elliott Wave Analysis for the daily chart reveals a counter-trend phase, indicating that the market is undergoing a temporary correction against the prevailing trend. This movement is categorized as corrective, signifying a retracement rather than a trend continuation. Currently, the focus is on gray wave 2, which follows the completion of gray wave 1.
At this point, the market is situated in orange wave 3 within the broader structure of gray wave 2. With gray wave 1 completed, the market is now retracing some of its previous gains. In Elliott Wave Theory, wave 2 often corrects part of wave 1’s rise, meaning this correction is likely temporary. Once gray wave 2 concludes, the market is expected to resume the main trend.
The next anticipated movement in the higher degree is gray wave 3, which typically signifies an impulsive wave. This indicates that, once the corrective phase of gray wave 2 finishes, the market is poised for a significant upward move.
A critical level to watch is the invalidation point at 11,419.25. Should the market drop below this, the current analysis will no longer be valid, signaling the need for a revised wave count. It’s crucial for traders to monitor this level closely.
Summary:
The SMI Elliott Wave Analysis for the daily chart suggests a counter-trend correction with gray wave 2 currently unfolding. Traders should keep an eye on the 11,419.25 invalidation level to determine if the analysis remains valid. Once gray wave 2 concludes, a stronger upward trend, led by gray wave 3, is expected.
Swiss Market Index Elliott Wave Analysis – Trading Lounge Weekly Chart
Swiss Market Index Elliott Wave Technical Analysis
FUNCTION: Bullish Trend
MODE: Impulsive
STRUCTURE: Orange wave 3
POSITION: Navy blue wave 3
DIRECTION NEXT HIGHER DEGREES: Orange wave 3 (active)
DETAILS: Orange wave 2 has finished, and orange wave 3 has commenced.
Wave Cancel Invalidation Level: 11,419.25
The Swiss Market Index (SMI) Elliott Wave Analysis for the weekly chart shows a clear bullish trend, indicating strong upward momentum. The current market mode is impulsive, meaning the trend is firmly in place and the market is advancing. The structure under analysis is orange wave 3, a key element in this bullish phase.
The market is currently positioned in navy blue wave 3, part of the larger orange wave 3 structure. With orange wave 2 completed, the market is now moving into the more powerful wave 3 stage. According to Elliott Wave Theory, wave 3 is often the longest and strongest in an impulsive sequence, suggesting further substantial upward movement as the wave progresses.
The next expected movement is a continuation of orange wave 3, which has just begun. Since wave 3 is typically the most dynamic phase in the Elliott Wave sequence, the market is likely to experience significant gains before any corrective action.
The key invalidation level is 11,419.25. A drop below this point would invalidate the current wave structure and necessitate a reassessment. Maintaining above this level confirms the bullish trend's strength.
Summary:
The weekly chart of the SMI Elliott Wave Analysis highlights a robust bullish trend, with orange wave 3 leading the market upward. Traders should keep a close watch on the 11,419.25 invalidation level to confirm the continued strength of the bullish move. The upward momentum is expected to remain strong as orange wave 3 progresses.
Technical Analyst: Malik Awais
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