XLP: Another dip offered another buying opportunity

In this technical blog, we will look at the past performance of 1 hour Elliott Wave Charts of XLP, which we presented to members at the elliottwave-forecast. In which, the rally from 03 March 2021 low unfolded as an impulse structure. And showed a higher high sequence favored more upside extension to take place. Therefore, we advised members not to sell the stock & buy the dips in 3, 7, or 11 swings at the blue box areas. We will explain the structure & forecast below:

XLP 1 Hour Elliott Wave Chart

Above is the 1hr Elliott wave chart of XLP from the 4/27/2021 update. In which, the rally to $70.47 high ended wave 3 of an impulse sequence coming from 3/03/2021 low. Down from there, the ETF made a pullback in wave 4 to correct the cycle from the 3/05/2021 low. The internals of that pullback unfolded as Elliott wave zigzag structure where wave ((a)) ended in 3 swings at $69.29 low. Wave ((b)) bounce ended at the $69.79 high. Wave ((c)) was expected to reach the blue box area at $68.61- $67.88 100%-161.8% Fibonacci extension area of ((a))-((b)). From there, buyers were expected to appear looking for further upside ideally or for a 3 wave bounce at least.

XLP 1 Hour Elliott Wave Chart

Here’s the latest 1hr Elliott wave chart of XLP from the 5/04/2021 Post-Market update. The ETF is showing a strong reaction higher taking place from the blue box area after ending the zigzag correction at $68.43 low. Allowed members to create a risk-free position shortly after taking the long positions at the blue box area.