S&P/TSX 60 Elliott Wave Analysis - Trading Lounge Daily Chart

S&P/TSX 60 Elliott Wave Technical Analysis

Function: Trend

Mode: Impulsive

Structure: Gray Wave 5

Position: Orange Wave 3

Direction (Next Lower Degrees): Orange Wave 4

Details

The S&P/TSX 60 daily chart analysis from Trading Lounge showcases a consistent upward trend within the Canadian stock index. The ongoing structure exhibits an impulsive Elliott Wave pattern, with Gray Wave 5 actively progressing as part of Orange Wave 3. This formation suggests a continuation of bullish momentum in the market.

• Gray Wave 4 of Orange Wave 3 has completed, paving the way for Gray Wave 5 to extend further gains.

S&P/TSX Elliott Wave Theory Insights

• Wave 5 within an impulsive structure typically indicates the final upward thrust of a trend, generally preceding a corrective phase.

• In the context of Orange Wave 3, Gray Wave 5 complements the prevailing bullish momentum and is expected to lead the index higher before the anticipated Orange Wave 4 correction begins.

Key Level for Wave Invalidation

• Critical Level: 1,442.18
  If the index falls to or below 1,442.18, the current wave count becomes invalid. Such a move would signify a weakening in bullish momentum and could mark a potential trend reversal.

This invalidation point is crucial for traders as it serves as a checkpoint for market strength. A breach of this level would necessitate a reanalysis of the Elliott Wave structure and potentially a strategic pivot.

Summary and Market Outlook

• The S&P/TSX 60 Elliott Wave analysis indicates a bullish trend, with Gray Wave 5 advancing within Orange Wave 3.

• Additional upward movement is anticipated as Gray Wave 5 continues to develop.
• Traders should closely monitor the invalidation level at 1,442.18, as a breach may disrupt the bullish structure, signaling a potential reversal or pause in upward momentum.

This level remains a critical marker for evaluating the strength and sustainability of the bullish trend in the S&P/TSX 60 index.

S&P/TSX 60 Elliott Wave Analysis - Trading Lounge Weekly Chart

S&P/TSX 60 Elliott Wave Technical Analysis

Function: Trend

Mode: Impulsive

Structure: Navy Blue Wave 3

Position: Gray Wave 5

Direction (Next Lower Degrees): Navy Blue Wave 4

Details

The S&P/TSX 60 weekly chart analysis by Trading Lounge reflects a persistent upward trend in the Canadian stock index. This movement aligns with an impulsive Elliott Wave structure, where Navy Blue Wave 3 is currently active. Within this broader wave, Gray Wave 5 is progressing, reinforcing the bullish outlook.

Following the conclusion of Navy Blue Wave 2, the emergence of Navy Blue Wave 3 signifies a dominant upward trend. This wave structure indicates potential for further gains as the bullish momentum continues.

S&P/TSX 60 Elliott Wave Theory Insights

• Wave 3 in an impulsive structure is often the most robust phase, marked by significant upward momentum.

• Gray Wave 5, within Navy Blue Wave 3, sustains this bullish perspective, hinting at additional gains before the expected Navy Blue Wave 4 correction.

Key Level for Wave Invalidation

• Critical Level: 1,341.09
  A decline to or below 1,341.09 invalidates the current wave count, potentially signaling a weakening trend or a reversal in market direction.

This level is vital for traders to assess market momentum and strength. A breach could prompt a re-evaluation of the Elliott Wave sequence, indicating possible changes in market dynamics.

Summary and Market Outlook

• The S&P/TSX 60 Elliott Wave weekly chart analysis maintains a bullish projection, driven by Navy Blue Wave 3 with Gray Wave 5 in progress.

• Medium-term forecasts suggest continued upward movement, supported by the current impulsive wave structure.
• Traders are advised to monitor the invalidation level at 1,341.09, as a breach may disrupt the bullish framework and hint at a market reversal.

This critical level serves as a reference for validating the ongoing strength and persistence of the bullish trend in the S&P/TSX 60 index.

Technical Analyst: Malik Awais

Source: visit Tradinglounge.com and learn From the Experts Join TradingLounge Here 

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