Hello fellow traders. In this technical blog we’re going to take a quick look at the Elliott Wave charts of XLF ( Financial Select Sector), published in members area of the website. Break of April 26th peak made December 2018 Cycle incomplete to the upside .Consequently XLF is bullish against the 25.72 low. We advised members to avoid selling XLF and keep buying the dips in the sequences of 3,7,or 11 swings whenever opportunity presented itself. In further text we’re going to explain Elliott wave Forecast and trading strategy.
XLF 1 Hour Elliott Wave Analysis 7.17.2019
Current view suggests XLF is correcting the short term cycle from the 26.89 low. At this stage Pull back is showing incomplete 3 waves down from the peak, missing another swing down toward equal legs area :27.85-27.61. Due to incomplete bullish sequences we favor the long side and buying the dips in 3,7, or 11 swings against the 26.89 low. Buying zone comes at 27.85-27.61 ( blue box area). We like to be buyers there for proposed rally or 3 wave bounce alternatively.
Blue Boxes are no enemy areas , giving us 85% chance to get a bounce. The main trend is bullish and we expect to see reaction in 3 waves up from the blue box at least. As soon as the bounce reaches 50 fibs against the b red high, we will make long positions risk free. Invalidation level for buyers is break below 1.618 fib extension: 27.61.
XLF 1 Hour Elliott Wave Analysis 7.19.2019
Buyers appeared right at the blue box: 27.85-27.61 and we are calling pull back completed at 27.76 low as Elliott Wave Zig Zag Pattern. XLF made nice bounce so far and members who took the long trades are now enjoying profits with risk free positions. We would like to see further separation from the current low and ideally break above July 15th peak to confirm next leg up is in progress. We don’t recommend selling it in any proposed pull back and favor the long side from the blue box area.
You can learn more about Zig Zag Elliott Wave Patterns at our Free Elliott Wave Educational Web Page.
XLF 1 Hour Elliott Wave Analysis 7.29.2019
27.76 low held nicely all the time and we got rally. Eventually XLF broke above July 15th peak and gave us confirmation next leg up is in progress. Now XLF is bullish against the 27.76 in first degree. We should be ending cycle from the 27.76 low soon as 5 waves structure. Buyers can be taking profits at 28.76-28.87 area and consequently we can get 3 waves pull back before further rally ideally resumes.
Keep in mind that market is dynamic and presented view could have changed in the mean time. Best instruments to trade are those having incomplete bullish or bearish swings sequences. We put them in Sequence Report and best among them are shown in the Live Trading Room. You can check most recent charts in the membership area of the site.
Elliott Wave Forecast
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