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:

• The wave [4] triangle in IBB is complete, signaling a major buying opportunity.

• The following move is an impulsive post-triangle thrust, often very strong.

• Currently, wave 1 of [5] is underway, expected to complete near the $150 level before wave 2 begins.

• 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:

• The current decline is only a brief pause within a major rally.

• Wave [ii] is retracing the leading diagonal wave [i] as an expanded flat structure.

• Afterward, the next move is expected to be an impulsive rally towards $142.80.

• The $125 level offers a favorable buying opportunity, with $107.43 as the stop-loss level.

• The $117 mark serves as key support.

Invalidation level: $107.43.

Conclusion

The summary of the Elliott Wave analysis for IBB is:

• The rally is young and poised for a significant extension, representing a post-triangle thrust.

• Price action is expected to retrace the entire triangle formation and possibly move far beyond.

• $125 is considered an excellent buying area, with $107.43 as the risk management stop-loss.

• This setup provides a compelling buying opportunity, particularly for ETF investors.

• 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]