Nasdaq iShares Biotechnology ETF (IBB) Elliott Wave analysis [Video]

IBB weekly chart – Elliott Wave technical analysis

• Function: Major Trend.

• Mode: Motive.

• Structure: Triangle.

• Position: Wave [4].

• Direction: Uptrend.

Details:

• The wave [4] triangle in IBB appears completed, signaling a major buying opportunity.

• Following the triangle, a post-triangle thrust is developing, typically marked by strong impulsive behavior.

• We are currently in wave (1) of [5], aiming for an initial target around $150 before wave (2) correction begins.

• A clear confirmation level for this outlook lies at $142.80.

• Invalidation level: $107.43.

IBB daily chart – Elliott Wave technical analysis

• Function: Major Trend.

• Mode: Motive.

• Structure: Impulse.

• Position: Wave [ii].

• Direction: Minor Decline.

Details:

• The current decline is considered a temporary pause within a larger rally.

• Wave [ii] may retrace a significant part of the leading diagonal but is not expected to invalidate the bullish setup.

• After completion, the next move is forecasted to be impulsive toward $142.80.

• Invalidation level: $107.43

Conclusion

• The ongoing rally in IBB is in its early stages and is likely to be extensive, given the nature of a post-triangle thrust.

• IBB is expected to retrace the full triangle and potentially surpass it.

• This setup represents an excellent buying opportunity for ETF investors.

• Traders should closely monitor Elliott Wave structures and respect invalidation levels to manage risk effectively.

Nasdaq iShares Biotechnology ETF (IBB) Elliott Wave analysis [Video]