S&P/TSX 60 Elliott Wave Analysis – Trading Lounge.
S&P/TSX 60 Elliott Wave technical analysis
Details:
The analysis of the S&P/TSX 60 daily chart by Trading Lounge highlights a continuing upward trend within the Canadian stock index. The current structure follows an impulsive Elliott Wave formation, with gray wave 5 actively unfolding as part of the broader orange wave 3. This progression indicates sustained bullish momentum in the market.
Gray wave 4 of orange wave 3 appears to have completed, setting the stage for gray wave 5 to drive further gains.
Elliott Wave theory insights
Wave 5 in an impulsive structure often signals the final push within a trend, generally propelling prices higher before transitioning into a corrective phase.
In the context of orange wave 3, gray wave 5 aligns with the prevailing bullish sentiment. It is expected to lead the index higher before the anticipated orange wave 4 correction phase emerges.
Key level for wave invalidation
Critical Level: 1,442.18.
If the index falls to or below 1,442.18, the current wave count would be invalidated. This breach would suggest weakening bullish momentum and could signal a reversal.
This invalidation point is essential for traders as it acts as a checkpoint to assess the market’s strength. A decline beyond this level would necessitate a reevaluation of the Elliott Wave structure and a potential shift in strategy.
Summary and market outlook
The S&P/TSX 60 Elliott Wave analysis presents a bullish trend outlook with gray wave 5 advancing within orange wave 3.
Additional upward movement is expected as gray wave 5 unfolds.
Traders should vigilantly monitor the 1,442.18 invalidation level. Any breach could disrupt the current bullish structure, signaling a possible reversal or a pause in the upward trajectory.
This level remains critical for confirming the strength and continuity 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
Details:
The S&P/TSX 60 weekly chart analysis by Trading Lounge highlights a continuing upward trend in the Canadian stock index. This trend is driven by an impulsive Elliott Wave formation, with navy blue wave 3 currently active. Within this broader wave, gray wave 5 is in progress, signaling sustained bullish momentum.
Following the completion of navy blue wave 2, navy blue wave 3 has emerged as a dominant force, reflecting an advancing trend. This configuration indicates further potential gains for the index as the current wave structure unfolds.
Elliott Wave theory insights
Wave 3 within an impulsive structure often represents a strong movement phase, marked by substantial upward momentum.
Gray wave 5, now progressing within navy blue wave 3, reinforces the bullish perspective, suggesting additional upward movement before the anticipated navy blue wave 4 corrective phase.
Key level for wave invalidation
Critical Level: 1,341.09
A decline to or below this level would invalidate the current wave structure, potentially weakening the bullish trend or signaling a reversal.
This invalidation point is vital for traders to assess market strength and momentum. Breaching this threshold could prompt a reevaluation of the Elliott Wave sequence and may indicate changing market dynamics.
Summary and market outlook
The S&P/TSX 60 Elliott Wave analysis on the weekly chart maintains a bullish outlook, with navy blue wave 3 propelling the market upward and gray wave 5 currently in play.
Medium-term projections indicate continued upward movement, supported by the current impulsive structure.
Traders should carefully watch the invalidation level at 1,341.09. Breaching this level could disrupt the bullish framework and suggest a potential shift in market direction.
This level serves as a critical reference point for validating the ongoing strength and persistence of the bullish trend in the S&P/TSX 60 index.
Technical analyst: Malik Awais.
S&P/TSX 60 Elliott Wave technical analysis [Video]
Source: https://www.fxstreet.com/news/sp-tsx-60-index-elliott-wave-technical-analysis-video-202411150926