JSW STEEL – Elliott Wave Analysis – TradingLounge Daily Chart
JSW STEEL Elliott Wave Technical Analysis
FUNCTION: Counter Trend
MODE: Corrective
STRUCTURE: Orange Wave 2
POSITION: Navy Blue Wave 1
DIRECTION NEXT HIGHER DEGREES: Orange Wave 3
DETAILS: Orange wave 1 appears complete; orange wave 2 is currently forming.
Wave Cancel/Invalid Level: 906
JSW STEEL Daily Elliott Wave Forecast:
JSW STEEL's daily Elliott Wave analysis suggests a counter-trend correction within a larger bullish structure. Orange wave 1 has likely completed, and the stock is currently forming orange wave 2 within the broader navy blue wave 1 uptrend. This represents a short-term pullback within a medium-term upward trend.
Wave 2 generally retraces 38% to 61% of wave 1 and is often seen as a zigzag or flat corrective pattern. Given wave 1’s strong bullish impulse, wave 2 is expected to unfold with slower momentum and overlapping structure, signaling a classic corrective phase. This aligns with a temporary consolidation before a bullish continuation.
Once orange wave 2 concludes, an impulsive orange wave 3 is expected. Historically, wave 3 delivers the strongest price action, potentially breaking above the wave 1 peak. The key invalidation level is at 906—a breach here negates the current bullish wave setup.
Trading Strategy Insight:
Watch for reversal signals indicating wave 2 is ending—bullish candlesticks, momentum indicators, or oversold conditions may point to a turning point. This corrective wave presents potential entry opportunities ahead of the forecasted orange wave 3 rally. Use Fibonacci retracement zones and momentum analysis to fine-tune entries during this setup phase.
JSW STEEL – Elliott Wave Analysis – TradingLounge Weekly Chart
JSW STEEL Elliott Wave Technical Analysis
FUNCTION: Bullish Trend
MODE: Impulsive
STRUCTURE: Navy Blue Wave 1
POSITION: Gray Wave 3
DIRECTION NEXT LOWER DEGREES: Navy Blue Wave 2
DETAILS: Gray wave 2 is likely complete; navy blue wave 1 within gray wave 3 is developing.
Wave Cancel/Invalid Level: 906
JSW STEEL Weekly Elliott Wave Forecast:
The weekly Elliott Wave outlook for JSW STEEL supports a bullish impulsive structure. With gray wave 2 likely complete, the stock has entered navy blue wave 1, the early segment of a larger gray wave 3. This implies a renewed uptrend with stronger momentum likely building in the coming weeks.
Wave 1 often begins with moderate bullish activity, marking the foundation of a new trend. While not explosive, this phase is crucial for establishing market confidence. The structure signals a gradual but firm advance, laying the groundwork for future impulsive waves.
As gray wave 3 unfolds, the bullish case strengthens. The support/invalidation level at 906 remains critical—any move below this level would invalidate the current count and require reevaluation.
Trading Strategy Insight:
Track wave 1’s development through volume increases and sustained upward price action. This phase presents early trade setup opportunities for positioning before wave 2 correction and eventual wave 3 strength. Use weekly trend confirmation tools to reinforce analysis and capture momentum shifts.
Wave 2 will follow upon completion of wave 1, offering a pullback and re-entry window. The weekly timeframe is ideal for planning medium-term positions aligned with the upcoming bullish cycle.
Technical Analyst: Malik Awais
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