Hello traders. Welcome to another blog post where we discuss the application of the Elliott wave theory to trade different financial assets. In today’s post, we will discuss the IWM Elliott wave analysis.
The ETF reached an all-time high in November 2021 at 244.46, completing a bullish cycle. Afterward, it plummeted to 162.78 in June 2022 as part of the bearish corrective phase. We shared the chart below with members of ElliottWave-Forecast on the weekend of 9th June 2024.
IWM Elliott Wave analysis – Weekly chart 06.09.2024
The weekly chart above shows the expected corrective phase – wave II. Wave II completed the first leg – wave a in June 2022 and is now on a multi-month rebound for the second leg – wave b. Meanwhile, the price is precisely moving upwards in wave (3) of ((C)) of b. We continued to share weekend charts with members, indicating that the preferred path was upward and we didn’t recommend selling. Thus, buying the pullback was ideal to align with the overriding trend.
IWM Elliott Wave analysis – H4 chart 06.10.2024
On 10th June 2024, we shared the chart above with members. We identified the end of wave 1 of (3) discussed above in the weekly chart. The corresponding pullback for wave 2 was completing a double zigzag Elliott Wave structure. Besides the structure, we also identified the reversal zone at 199.02-193.10. We expected wave 3 to begin from this zone, offering ample opportunity for buyers.
IWM Elliott Wave analysis – H4 chart 06.12.2024
On 10th June 2024, the price hit a little below 199.02 and surged as expected. We shared the H4 chart above with members on 12th June to show wave 3 of (3) had begun. At the first surge, traders hit their first target, closed half of their positions, and adjusted the remaining half to almost break even. Thus, it’s a risk-free trade with the potential for even more profit.
What next?
Currently, IWM is in wave 3. Wave 3 should break above wave 1 with an impulse, targeting 223.85-228.19. However, we don’t expect the wave 3 rally to proceed in a straight line. There will be pullbacks along the way. The good thing is that these pullbacks can be trading opportunities on the hourly time frames. We update the H1 chart of the IWM three times a day, the H4 chart at the end of the day, and the Daily and Weekly charts on the weekend. We do this consistently for IWM and 77 other instruments.
Members receive hourly updates four times a day and can use our forecasts as guides for their trading strategies. On each chart, we indicate the trading direction to consider. In the live trading room, members have access to trade signals and trade management guides. Additionally, members can chat with our analysts 24 hours from Monday to Friday.
FURTHER DISCLOSURES AND DISCLAIMER CONCERNING RISK, RESPONSIBILITY AND LIABILITY Trading in the Foreign Exchange market is a challenging opportunity where above average returns are available for educated and experienced investors who are willing to take above average risk. However, before deciding to participate in Foreign Exchange (FX) trading, you should carefully consider your investment objectives, level of xperience and risk appetite. Do not invest or trade capital you cannot afford to lose. EME PROCESSING AND CONSULTING, LLC, THEIR REPRESENTATIVES, AND ANYONE WORKING FOR OR WITHIN WWW.ELLIOTTWAVE- FORECAST.COM is not responsible for any loss from any form of distributed advice, signal, analysis, or content. Again, we fully DISCLOSE to the Subscriber base that the Service as a whole, the individual Parties, Representatives, or owners shall not be liable to any and all Subscribers for any losses or damages as a result of any action taken by the Subscriber from any trade idea or signal posted on the website(s) distributed through any form of social-media, email, the website, and/or any other electronic, written, verbal, or future form of communication . All analysis, trading signals, trading recommendations, all charts, communicated interpretations of the wave counts, and all content from any media form produced by www.Elliottwave-forecast.com and/or the Representatives are solely the opinions and best efforts of the respective author(s). In general Forex instruments are highly leveraged, and traders can lose some or all of their initial margin funds. All content provided by www.Elliottwave-forecast.com is expressed in good faith and is intended to help Subscribers succeed in the marketplace, but it is never guaranteed. There is no “holy grail” to trading or forecasting the market and we are wrong sometimes like everyone else. Please understand and accept the risk involved when making any trading and/or investment decision. UNDERSTAND that all the content we provide is protected through copyright of EME PROCESSING AND CONSULTING, LLC. It is illegal to disseminate in any form of communication any part or all of our proprietary information without specific authorization. UNDERSTAND that you also agree to not allow persons that are not PAID SUBSCRIBERS to view any of the content not released publicly. IF YOU ARE FOUND TO BE IN VIOLATION OF THESE RESTRICTIONS you or your firm (as the Subscriber) will be charged fully with no discount for one year subscription to our Premium Plus Plan at $1,799.88 for EACH person or firm who received any of our content illegally through the respected intermediary’s (Subscriber in violation of terms) channel(s) of communication.
Recommended content
Editors’ Picks
EUR/USD stays in daily range near 1.0400 after US data
EUR/USD extends its sideways grind at around 1.0400 in the American session on Thursday. The data from the US showed that weekly Initial Jobless Claims rose to 223,000 from 217,000 in the previous week, limiting the US Dollar's gains and helping the pair hold its ground.
GBP/USD stabilizes above 1.2300 as USD struggles to gather strength
GBP/USD fluctuates above 1.2300 in the second half of the day on Thursday. Although the cautious market stance doesn't allow the pair to gather bullish momentum, the lack of US Dollar demand following the weak Jobless Claims data helps it keep its footing.
Gold continues rally amid trade uncertainty
Gold extends its correction from the multi-month high it set above $2,760 on Wednesday and trades below $2,740 on Thursday. The 10-year US Treasury bond yield stays in positive territory above 4.6% after of US data, not allowing XAU/USD to regain its traction.
Ethereum is underperforming, while Ripple and Solana take the lead
Ethereum price trades around $3,200 while Ripple and Solana hovers around $3.13 and $250, respectively, on Thursday. Santiment data shows that ETH market capitalization fell 4.7%, while XRP and SOL surged 36.9% and 32.2% in one month.
Federal Reserve set for an extended pause
After 100bp of rate cuts the Fed has signalled it needs evidence of economic weakness and more subdued inflation prints to justify further policy loosening. President Trump’s low tax, light-touch regulation policies should be good news for growth.
Trusted Broker Reviews for Smarter Trading
VERIFIED Discover in-depth reviews of reliable brokers. Compare features like spreads, leverage, and platforms. Find the perfect fit for your trading style, from CFDs to Forex pairs like EUR/USD and Gold.