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

SPDR Select Sector Fund ETF – XLF Elliott Wave technical analysis

• Function: Major Trend.

• Mode: Motive.

• Structure: Impulse Wave.

• Position: Wave 4 (Grey).

• Direction: Mini Decline.

Details:

• The bearish trend remains in force, heading towards the completion of wave [c] of a flat wave 4.

• Wave 4 is expected to bottom between $46.02 and $47.38, aligning with the most common Fibonacci retracement levels for wave 4 (38.2% & 50%) and the 200 EMA, which acts as support.

• Confirmation of a reversal will occur if the price breaks above $48.00.

• After the wave 4 bottom, a 5th wave rally is anticipated, pushing prices above the origin of wave 4.

• Invalidation Level: Any decline below $44.00 raises doubts about the current Elliott Wave count.

SPDR Select Sector Fund ETF – XLF Elliott Wave technical analysis

• Function: Minor Trend (Grey).

• Mode: Corrective.

• Structure: Impulse.

• Position: Wave [c] (Navy) of Wave 4 (Grey).

• Direction: Downtrend.

Details:

• A rally should resume once the wave [iv] throwback is completed.

• Wave iv is expected to end within the highlighted Fibonacci levels.

• The Kennedy Blue Box, a common reversal zone for 4th waves, is in play, suggesting a similar expectation here.

• If the decline reaches 50%, entering long positions at the 38.2% retracement with a stop-loss below the 61.8% level is a viable strategy.

• The minimum target is set at $52.50.

• Invalidation Level: Any drop below $44.00 would raise doubts regarding the current wave count.

Conclusion

• The wave decline in XLF continues, and the correction phase is nearing completion.

• Once the correction ends, the market should rally above the origin of wave 4.

• This presents a strong opportunity for ETF traders looking to go long.

• Following Elliott Wave rules and monitoring invalidation levels is crucial to avoid potential losses.

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