SPDR Select Sector Fund ETF – XLF Elliott Wave technical analysis [Video]
|SPDR Select Sector Fund ETF – XLF Elliott Wave technical analysis
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Function: Major Trend.
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Mode: Motive.
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Structure: Impulse Wave.
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Position: Wave 4 (Grey).
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Direction: Mini Decline.
Details:
- The bearish trend remains in force, heading towards the completion of wave [c] of a flat wave 4.
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Wave 4 is expected to bottom between $46.02 and $47.38, aligning with the most common Fibonacci retracement levels for wave 4 (38.2% & 50%) and the 200 EMA, which acts as support.
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Confirmation of a reversal will occur if the price breaks above $48.00.
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After the wave 4 bottom, a 5th wave rally is anticipated, pushing prices above the origin of wave 4.
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Invalidation Level: Any decline below $44.00 raises doubts about the current Elliott Wave count.
SPDR Select Sector Fund ETF – XLF Elliott Wave technical analysis
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Function: Minor Trend (Grey).
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Mode: Corrective.
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Structure: Impulse.
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Position: Wave [c] (Navy) of Wave 4 (Grey).
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Direction: Downtrend.
Details:
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A rally should resume once the wave [iv] throwback is completed.
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Wave iv is expected to end within the highlighted Fibonacci levels.
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The Kennedy Blue Box, a common reversal zone for 4th waves, is in play, suggesting a similar expectation here.
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If the decline reaches 50%, entering long positions at the 38.2% retracement with a stop-loss below the 61.8% level is a viable strategy.
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The minimum target is set at $52.50.
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Invalidation Level: Any drop below $44.00 would raise doubts regarding the current wave count.
Conclusion
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The wave decline in XLF continues, and the correction phase is nearing completion.
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Once the correction ends, the market should rally above the origin of wave 4.
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This presents a strong opportunity for ETF traders looking to go long.
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Following Elliott Wave rules and monitoring invalidation levels is crucial to avoid potential losses.
SPDR Select Sector Fund ETF – XLF Elliott Wave technical analysis [Video]
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