XLF Elliott Wave technical analysis [Video]

XLF Elliott Wave technical analysis

Function: Major Trend.

Mode: Motive.

Structure: Impulse Wave.

Position: Wave 3.

Direction: Uptrend.

Details:

• Wave 3 is currently unfolding and expected to lead to new highs.

• This wave typically represents the strongest phase of the impulse structure.

• The rally is projected to surpass the previous $52.64 high.

• However, there remains the possibility that the current move is part of a larger correction—possibly wave [b] of 2 not yet completed.

• Key support rests at the $45.14 low.

• Invalidation level is set at $42.21.

XLF Elliott Wave technical analysis 

Function: Major Trend.

Mode: Motive.

Structure: Impulse.

Position: Wave (iii) orange.

Direction: Uptrend.

Details:

• Wave (ii) appears to have completed but could evolve into a flat structure.

• The low of wave (ii) acts as the critical support level.

• The low of wave [c] of 2 is also key support.

• Breaching the $47.89 high offers initial confirmation, though it remains insufficient alone.

• The projected end of wave (iii) targets a price beyond $51.00.

• Key support remains $45.14.

• Invalidation level: $42.21.

Conclusion:

The ongoing XLF rally is likely wave (iii) of a developing wave [i] within wave 3. This setup presents an attractive opportunity for ETF traders looking to go long. Price action is expected to exceed the $52.64 high, with $51.00 as the minimum wave (iii) target. Strict adherence to Elliott Wave rules and monitoring key invalidation levels is essential to avoid false setups and unnecessary losses.

Technical analyst: Siinom.

XLF Elliott Wave technical analysis [Video]