Russell 2000 Elliott Wave Analysis - TradingLounge Daily Chart
Index: Russell 2000
Chart Type: Daily Chart
Russell 2000 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: The daily Elliott Wave analysis of the Russell 2000 index indicates a counter-trend structure with a corrective mode in gray wave 2, progressing within the broader gray wave 3 framework. This configuration points to a retracement phase, pausing the primary trend temporarily. Following gray wave 1’s completion, the corrective gray wave 2 has begun, signaling a potential slowdown in upward momentum before gray wave 3 resumes the trend.
Gray Wave 2’s Role in the Sequence:
Gray wave 2 functions as a corrective pullback in the index’s sequence, suggesting that after it concludes, the market may resume its broader upward trend with gray wave 3. In the context of Elliott Wave theory, wave 2 typically reflects a rebalancing phase, which consolidates market positions and primes the setup for the next upward move once the correction is complete.
Wave Cancellation Level:
The critical wave cancellation threshold for this corrective structure is at 196.37. Should this level be breached, the current corrective pattern would be invalidated, necessitating a reassessment of the Russell 2000 Elliott Wave count. Maintaining this level intact supports the ongoing gray wave 2, which is anticipated to transition smoothly into gray wave 3 post-correction.
Summary
The Russell 2000 daily chart reflects a corrective pattern within gray wave 2, with the phase following gray wave 1 and preparing for gray wave 3. This pattern suggests a temporary retracement, with 196.37 serving as the decisive level for confirming the wave structure. Once gray wave 2 is complete, an upward shift toward gray wave 3 is expected.
Russell 2000 Elliott Wave Analysis - TradingLounge Weekly Chart
Index: Russell 2000
Chart Type: Weekly Chart
Russell 2000 Elliott Wave Technical Analysis
Function: Trend
Mode: Impulsive
Structure: Orange Wave 3
Position: Navy Blue Wave 3
Direction Next Lower Degrees: Orange Wave 4
Details:
The weekly Elliott Wave analysis for the Russell 2000 index outlines a trend-oriented, impulsive structure with orange wave 3 in motion. Positioned within navy blue wave 3, this pattern underscores an upward trend where orange wave 3 has initiated after orange wave 2’s conclusion. In Elliott Wave theory, an impulsive wave such as wave 3 is often the most dynamic and prolonged phase, signifying robust upward momentum and sustained growth potential.
Progression of Orange Wave 3:
With orange wave 2 concluded, orange wave 3 currently propels the broader trend upward. The development of orange wave 3 aligns with a bullish outlook within navy blue wave 3, setting the stage for an extended growth phase. This impulsive structure supports the ongoing upward trajectory, indicating a favorable environment for continued market expansion.
Wave Cancellation Level:
The critical cancellation level for this impulsive structure is also established at 196.37. A decline below this level would invalidate the current wave setup, requiring a recalibration of the Elliott Wave count and potentially indicating a trend shift. Above this threshold, the impulsive structure remains valid, with further advances expected within orange wave 3.
Summary
The weekly analysis of the Russell 2000 highlights an impulsive pattern within orange wave 3, set in navy blue wave 3, promoting upward momentum. Following the completion of orange wave 2, orange wave 3 has emerged, reinforcing expectations of sustained growth. The level at 196.37 remains crucial for maintaining the wave’s validity, with anticipated upward movement within this structure as long as prices stay above this key point.
Technical Analyst: Malik Awais
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