Nasdaq iShares Biotechnology ETF – IBB Elliott Wave technical analysis [Video]
|Nasdaq iShares Biotechnology ETF – IBB (one-day) Elliott Wave technical analysis
Daily chart
Function: Major Trend.
Mode: Motive.
Structure: Triangle.
Position: Wave 1 of [5].
Direction: Uptrend.
Details:
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The wave [4] triangle in IBB is complete, signaling a major buying opportunity.
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The following move is an impulsive post-triangle thrust, often very strong.
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Currently, wave 1 of [5] is underway, expected to complete near the $150 level before wave 2 begins.
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The clearest confirmation will occur at $142.80.
Invalidation level: $107.43.
Nasdaq iShares Biotechnology ETF – IBB (four-hour) Elliott Wave technical analysis
Hourly chart
Function: Major Trend.
Mode: Motive.
Structure: Impulse.
Position: Wave [ii].
Direction: Minor Correction.
Details:
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The current decline is only a brief pause within a major rally.
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Wave [ii] is retracing the leading diagonal wave [i] as an expanded flat structure.
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Afterward, the next move is expected to be an impulsive rally towards $142.80.
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The $125 level offers a favorable buying opportunity, with $107.43 as the stop-loss level.
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The $117 mark serves as key support.
Invalidation level: $107.43.
Conclusion
The summary of the Elliott Wave analysis for IBB is:
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The rally is young and poised for a significant extension, representing a post-triangle thrust.
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Price action is expected to retrace the entire triangle formation and possibly move far beyond.
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$125 is considered an excellent buying area, with $107.43 as the risk management stop-loss.
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This setup provides a compelling buying opportunity, particularly for ETF investors.
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Traders must adhere to Elliott Wave rules and closely monitor invalidation levels to mitigate unnecessary losses.
Nasdaq iShares Biotechnology ETF – IBB Elliott Wave technical analysis [Video]
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