TASI Index Elliott Wave technical analysis [Video]

TASI Index wave technical analysis

Function: Trend.

Mode: Impulsive.

Structure: Navy blue wave 1.

Position: Gray wave 3.

Direction next lower degrees: Navy blue wave 2.

Details: Gray wave 2 appears completed; navy blue wave 1 of 3 is now in progress.

Wave cancel invalid level: 10657.

The TASI INDEX daily chart indicates a developing bullish trend, unfolding through an impulsive Elliott Wave structure. With gray wave 2 completed, the index has moved into navy blue wave 1 within the broader gray wave 3 advance. This points to the early stages of a new impulse wave, potentially setting the stage for significant upside momentum.

Navy blue wave 1 typically represents the beginning of an impulse phase, marked by growing momentum and emerging market confidence. It follows gray wave 2’s correction and often displays steady movement as it establishes the trend. The current structure signals progressive upward development before the next correction begins.

After wave 1 completes, navy blue wave 2 is expected to form a temporary pullback. This correction could offer opportunities to enter before a more powerful wave 3 develops. The invalidation level at 10657 remains key—falling below it would nullify the current bullish wave interpretation and prompt a reassessment.

The daily chart highlights the potential for upward momentum to build. Wave 1 is usually less explosive than wave 3 but sets up the broader trend. Traders should observe volume increases and consistent price action to confirm trend continuation.

As this impulsive sequence unfolds, market watchers should focus on confirmation signals using price patterns and technical indicators. The broader transition into gray wave 3 implies a larger bullish phase is ahead. This current stage is crucial for positioning into a possible strong advance.

TASI Index Wave technical analysis

Function: Bullish Trend

Mode: Impulsive

Structure: Gray wave 3

Position: Orange wave 3

Direction next higher degrees: Gray wave 3 (started)

Details: Gray wave 2 appears completed; gray wave 3 is now in progress.

Wave cancel invalid level: 10657

The TASI INDEX weekly chart reflects a robust bullish trend developing through a classic impulsive Elliott Wave formation. With gray wave 2’s correction now completed, the market has entered gray wave 3 within the broader orange wave 3 progression. This suggests the beginning of the most energetic phase of the bullish sequence, often defined by sustained upward momentum and extended gains.

Gray wave 3 typically marks the most forceful segment in Elliott Wave patterns, with rapid and far-reaching price movement. With wave 2’s retracement behind us, the stage is set for this strong continuation wave, which historically outpaces wave 1 in both magnitude and duration. The current structure points to further upside as this trend matures before the next pullback emerges.

The weekly timeframe provides valuable clarity on the market’s structure, indicating this movement is part of a major uptrend. As the price advances within orange wave 3 at a higher degree, a longer-term bullish extension is likely. The invalidation level at 10657 remains essential; a drop below it would invalidate this wave count and require a fresh structural assessment.

Market participants should look for signals of strong wave 3 characteristics: rising momentum, increasing volume, and smooth progression. This is a favorable window for trend participation, though traders should remain alert for early signs of wave 3's exhaustion. Technical tools will help identify the structure's evolution and the eventual transition into gray wave 4.

The expected development after this phase is gray wave 4, providing a pullback opportunity before further continuation of the bullish trend. This current wave 3 is key for capturing high-momentum moves within the Elliott framework.

TASI Index Elliott Wave technical analysis [Video]