SPDR Select Sector Fund – Energy Select Sector ETF – XLE Elliott Wave technical analysis [Video]

SPDR Select Sector Fund – Energy Select Sector ETF – XLE (one-day) Elliott Wave technical analysis

Function: Major trend.

Mode: Motive.

Structure: Impulse wave.

Position: Wave (5).

Direction: Uptrend.

Details:

• The wave (4) decline has found its bottom, and the current upward movement marks the early stages of wave (5).

• This rally could represent either wave 1 or [i] of (5), suggesting a lengthy development.

• We anticipate the rally to surpass the $97.92 high comfortably.

• Although wave (4) could evolve into a more complex correction, adhering to Occam’s Razor remains the preferred approach.

Invalidation level: $74.49

SPDR Select Sector Fund – Energy Select Sector ETF – XLE (four-hour) Elliott Wave technical analysis

Function: Major trend.

Mode: Motive.

Structure: Impulse.

Position: Wave iii.

Direction: Rally.

Details:

• Wave iii has commenced and is expected to extend, with a potential leading diagonal forming.

• The $76.00 level is crucial for gauging any downside movement.

• The ongoing wave [2] correction should end within the highlighted Fibonacci levels.

• Once the correction concludes, a rally confirmed by surpassing $83.19 should follow.

• Optimal entry strategy: wait for a throwback before considering long positions.

Invalidation level: $74.49

Conclusion

The overall summary of the Elliott Wave analysis:

• The 4th wave has concluded, and we are transitioning into the 5th wave, which should be impulsive and reach new highs.

• $74.49 remains the critical invalidation point for any downward movement.

• After a minor wave [2] pullback that does not invalidate the count, a long position is advised.

• Strict compliance with Elliott Wave principles and monitoring invalidation levels are crucial to avoid unnecessary trading losses.

SPDR Select Sector Fund – Energy Select Sector ETF – XLE Elliott Wave technical analysis [Video]