The Russell 2000 Elliott Wave analysis on both the daily and weekly charts suggests a strong impulsive trend in the market, with wave structures indicating significant upward momentum. On the daily chart, the market is currently in gray wave 3, while the weekly chart shows the market in orange wave 3. Both wave structures are in progress following the completion of corrective waves, indicating a continuation of the overall bullish trend.
The alignment of wave counts at different degrees, such as gray and orange wave 3, reinforces the probability of further market gains and a sustained uptrend. This alignment increases confidence in the continuation of the trend as multiple wave degrees support the same directional movement. Gray wave 3 is often considered one of the strongest waves in the Elliott Wave cycle, suggesting the market could see dynamic price movements.
A crucial level to watch is the wave cancel invalidation level at 203.76. If the market falls below this level, it would invalidate the current wave counts and potentially signal a shift in the anticipated direction of the market. However, as long as the market remains above this level, the analysis indicates a strong bullish trend with upward momentum expected to continue.
Overall, the Russell 2000 Elliott Wave analysis by technical analyst Malik Awais points towards a positive outlook for the market, with both the daily and weekly charts showing impulsive trends in progress. The alignment of wave counts at different degrees reinforces the likelihood of further market gains, with the current wave structures indicating a continuation of the bullish trend. Traders and investors should closely monitor the invalidation level of 203.76 to gauge the potential reversal or continuation of the market’s direction.
