XLF Elliott Wave technical analysis [Video]

by · FXStreet

XLF Elliott Wave technical analysis

Daily chart analysis

  • Function: Major Trend.
  • Mode: Motive.
  • Structure: Impulse Wave.
  • Position: Wave 5 Navy.
  • Direction: Uptrend.

Details:

  • The 4th wave bottomed at $47.22 in a flat pattern.
  • The current rally is still in its early stages and is expected to fully retrace Wave 4 in a five-wave upward structure.
  • Minimum target: $54.00, aligning with the upper boundary of Elliott’s final channel.
  • Invalidation Level: $47.22

4-Hour chart analysis

  • Function: Major Trend.
  • Mode: Motive.
  • Structure: Impulse.
  • Position: Wave 5 Navy.
  • Direction: Uptrend.

Details:

  • Wave 4 has ended within the expected KTL time range, confirming the wave count.
  • The ongoing rally indicates the early stages of Wave 5, suggesting a strong buying opportunity.
  • A throwback before continuation is expected, providing a better entry point.
  • The $52.635 high should be surpassed by the ongoing climb.
  • Key level: $48.18.
  • Invalidation Level: $47.23.

Conclusion

  • The 4th wave decline and correction in XLF is now complete.
  • The ongoing rally is a fifth-wave movement, signaling a strong upward trend.
  • After a potential throwback from a fifth-wave subwave, the market should rally significantly.
  • This setup presents a good opportunity for ETF traders to go long.
  • Adhering to Elliott Wave principles and monitoring invalidation levels is crucial to avoid unnecessary losses.

Technical analyst: Siinom.

XLF Elliott Wave technical analysis [Video]

Share: Feed news