In this technical blog, we will look at the past performance of the Daily Elliott Wave Charts of XLF. In which, the rally from the 23 March 2020 low unfolded as an impulse and showed a higher high sequence. Therefore, we knew that the structure in XLF is incomplete to the upside & should see more upside. So, 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 Daily Elliott Wave Chart
Here’s Elliott wave Chart from the 3/06/2022 Weekend update. In which, the rally to $41.70 high ended the cycle from the 23 March 2020 low & made a pullback. The internals of that pullback unfolded as where wave ((W)) ended in 3 swings at $36.82 low. Then a bounce to $41.39 high ended wave ((X)) & started the next leg lower in wave ((Y)) towards $36.52- $33.48 blue box area. From there, buyers were expected to appear looking for new highs ideally or for a 3 wave bounce minimum.
XLF Daily Elliott Wave Chart
Above is the latest Elliott wave Chart from the 4/03/2022 update. In which the ETF is showing a reaction higher taking place from the blue box area at $36.52- $33.48. Right after ending the double correction within the blue box area. Allowed members to create a risk-free position with the minimum reaction higher towards 50%- 61.8% Fibonacci retracement from the peak at $38.60- $39.33 area. However, a break above $41.70 high is still needed to confirm the next extension higher & avoid double correction lower.
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Source:-forecast.com/stock-market/xlf-bounce-allowed-longs-get-risk-free-position/
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