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

Peter Mathers TradingLounge

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]

Author

Peter Mathers

TradingLounge

Peter Mathers started actively trading in 1982. He began his career at Hoei and Shoin, a Japanese futures trading company.

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