XLF into the new highs after reaching blue box area

In this technical blog, we will look at the past performance of the 1-hour Elliott Wave Charts of XLF. In which, the rally from the 05 August 2024 low unfolded as an impulse structure and showed a higher high sequence. Suggested that ETF should see more upside extension to complete the impulse sequence. Therefore, we advised members not to sell the ETF & buy the dips in 3, 7, or 11 swings at the blue box areas. We will explain the structure & forecast below:

XLF one-hour Elliott Wave chart from 10.31.2024

Here’s the 1-hour Elliott wave chart of XLF from the 10.31.2024 Midday update. In which, the short-term cycle from the 9.25.2024 low ended in wave ((iii)) as impulse at $47.81 high. Down from there, the ETF made a pullback in wave ((iv)) to correct that cycle. The internals of that pullback unfolded as Elliott wave double three structure where wave (w) ended at $46.52 low. Wave (x) bounce ended at $47.43 high and wave (y) managed to reach the blue box area at $46.14- $45.34. From there, buyers were expected to appear looking for the next leg higher or for a 3 wave bounce minimum.

XLF latest one-hour Elliott Wave chart from 11.12.2024

This is the latest 1-hour Elliott wave Chart from the 11.12.2024 Post-Market update. In which the ETF is showing a reaction higher taking place, right after ending the double correction within the blue box area. Allowed members to create a risk-free position shortly after taking the long position at the blue box area. Since then the ETF has managed to make a new high above $47.81 high. Confirming the next extension higher towards $50.48- $51.53 area before profit taking & a pullback happens in another 3 swings at least.