XLF forecasting the rally from elliott wave blue box areas

In this technical blog, we are going to take a look at the past performance of 1 hour Elliott Wave Charts of XLF an ETF from the financial sector. In which, the rally from 29 October 2020 low unfolded as impulse structure favored more strength to take place. Also, the right side tag pointed higher & favored more strength. Therefore, we advised our members to buy the dips in XLF in 3, 7, or 11 swings at the blue box areas. We will explain the structure & forecast below:

XLF 1 Hour Elliott Wave Chart From 11.12.2020

Above is the 1 Hour Elliott wave Chart from the 11/12/2020 Midday update. In which, the pullback to $23.25 low ended wave 2. Up from there, the rally higher took place as impulse structure where wave ((i)) ended at $25.10 high. Wave ((ii)) ended at $24.18 low, wave ((iii)) ended at $27.45 high. While wave ((iv)) pullback managed to reach the $26.74- $26.33 100%- 161.8% Fibonacci extension area of (a)-(b) and provided buying opportunity to the members looking for more upside or for 3 wave reaction higher at least.

XLF 1 Hour Elliott Wave Chart From 11.25.2020

Here’s the 1 Hour Elliott wave Chart from the 11/25/2020 Pre-Market update. Showing Coffee reaching the blue box area & reaction higher from the blue box area and ended wave ((v)) of 3 at $27.97. Down from there, the ETF made a pullback in wave 4. The internals of that pullback unfolded as a zigzag structure where wave ((a)) ended at $27.13 low. Wave ((b)) bounce ended at $27.94 high and wave ((c)) ended at $27.02 low. Up from there, wave ((i)) of 5 ended at $28.96 high in another 5 waves impulse sequence and made another 3 wave pullback within wave ((ii)).

XLF 1 Hour Elliott Wave Chart From 11.30.2020

Here’s 1 Hour Elliott wave chart from the 11/30/2020 Pre-Market update. In which, the ETF made another 3 wave pullback in lesser degree wave ((ii)). The internals of that pullback unfolded as a zigzag structure where wave (a) ended at $28.22 low. Wave (b) bounce ended at $28.61 high and wave (c) was expected to reach $27.87- $27.41 100%-161.8% Fibonacci extension area of (a)-(b). From there, buyers were expected to appear for more upside or for 3 wave reaction higher at least.

XLF 1 Hour Elliott Wave Chart From 11.03.2020

Here’s the Latest 1 Hour Elliott wave Chart From 12/03/2020 Post-Market update. Showing XLF reaching the blue box area & reaction higher. Allowed members to create a risk-free position shortly after taking the longs at  $27.87- $27.41 blue box area.