We will look at the past performance of the 1-hour Elliott Wave Charts of the Eurostoxx index. The rally from the 23 October 2023 low is unfolding as an impulse structure. Showing a higher high sequence favored more upside extension to take place. We will explain the structure & forecast below:
Here’s the 1-hour Elliott wave chart from the 12/19/2023 Asia update. In which, the cycle from the 10/27/2023 low ended in wave 3 as an impulse structure at 4593.11 high. Down from there, the index made a pullback in wave 4 to correct that cycle. The internals of that pullback unfolded as Elliott wave double three structure where wave ((w)) ended at 4515.92 low. While wave ((x)) bounce ended at 4579.90 high. Then wave ((y)) managed to reach the blue box area at 4502.18- 4454.12. From there, buyers were expected to appear looking for the next leg higher or for a 3 wave bounce minimum.
This is the latest 1-hour Elliott wave Chart from the 12/27/2023 London update. In which the index shows a reaction higher taking place, right after ending the double correction within the blue box area. However, a break above the 4593.11 high is still needed to confirm the next extension higher & avoid a double correction lower.