XLF Elliott Wave technical analysis
Daily chart 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 5 Navy.
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Direction: Uptrend.
Details:
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The 4th wave bottomed at $47.22 in a flat pattern.
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The current rally is still in its early stages and is expected to fully retrace Wave 4 in a five-wave upward structure.
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Minimum target: $54.00, aligning with the upper boundary of Elliott’s final channel.
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Invalidation Level: $47.22
4-Hour chart analysis
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Function: Major Trend.
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Mode: Motive.
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Structure: Impulse.
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Position: Wave 5 Navy.
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Direction: Uptrend.
Details:
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Wave 4 has ended within the expected KTL time range, confirming the wave count.
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The ongoing rally indicates the early stages of Wave 5, suggesting a strong buying opportunity.
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A throwback before continuation is expected, providing a better entry point.
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The $52.635 high should be surpassed by the ongoing climb.
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Key level: $48.18.
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Invalidation Level: $47.23.
Conclusion
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The 4th wave decline and correction in XLF is now complete.
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The ongoing rally is a fifth-wave movement, signaling a strong upward trend.
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After a potential throwback from a fifth-wave subwave, the market should rally significantly.
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This setup presents a good opportunity for ETF traders to go long.
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Adhering to Elliott Wave principles and monitoring invalidation levels is crucial to avoid unnecessary losses.
Technical analyst: Siinom.
XLF Elliott Wave technical analysis [Video]
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