Hello fellow traders. In this technical article we’re going to look at the Elliott Wave charts of  XLV ETF  published in members area of the website. As our members know, XLV is showing incomplete bearish sequences in the cycle from the 159.64 peak (August high). The price structure indicated further weakness, targeting 126.53-120.91. In the following text, we will provide a more detailed explanation of the Elliott Wave forecast.

XLV Elliott Wave 1  Hour Chart 04.08.2025

The ETF calls for more weakness due to lower low sequences in the cycle from the 159.65 peak. XLV is targeting the 126.53–120.91 area. We anticipate a further drop as long as the pivot at 147.67 holds. The current view suggests XLV is giving us a 3-wave recovery (ABC in red), which could complete around the 139.26-141.1 area (equal legs A-B in red). We do not recommend buying at this stage and continue to favor the short side.

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XLV Elliott Wave 1  Hour Chart 04.09.2025

XLV found sellers as expected and made the nice reaction from the sellers zone . We would like to see break down of the low and continuation of the bearish cycle.

XLV Elliott Wave 1  Hour Chart 04.09.2025

XLV continued trading lower, made break of previous low and make sharp turn. This type of moves are tipical for Elliott Wave Flat patternst, when first 2 legs A and B are corrective and wave C is impulsive. The price reached extreme zone again, and reacted lower. While below 139.46 peak we can consider (4) blue recovery completed, looking for another low to complete the cycle.

The market is dynamic, and the presented view may have changed in the meantime. For the most recent charts and target levels, please refer to the membership area of the site. The best instruments to trade are those with incomplete bullish or bearish swing sequences. We put them in Sequence Report and best among them are presented in the Live Trading Room

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