XLY Reacted Strongly From The Extreme Blue Box Area
In this technical blog, we will look at the past performance of the 4-hour Elliott Wave Charts of (XLY) . We presented to members at the elliottwave-forecast. In which, the rally from 13 March 2023 low unfolded as an impulse structure. And showed a higher high sequence favored more upside extension to take place. 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:
XLY 4-Hour Elliott Wave Chart From 8.02.2023
Here’s the 4hr Elliott wave chart from the 8/02/2023 update. In which, the cycle from the 3/13/2023 low ended in wave (3) as an impulse structure at $177.80 high. Down from there, the ETF made a pullback in wave (4) to correct that cycle. The internals of that pullback unfolded as Elliott wave zigzag structure where wave A ended at $170.01 low. Wave b bounce ended at $175.25 high and wave C managed to reach the blue box area at $167.44- $162.61. From there, buyers were expected to appear looking for the next leg higher or for a 3 wave bounce minimum.
XLY Latest 4-Hour Elliott Wave Chart From 8.06.2023
This is the latest 4hr Elliott wave Chart from the 8/06/2023 Weekend update. In which the ETF is showing a strong reaction higher taking place, right after ending the zigzag 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. However, a break above $177.80 high is still needed to confirm the next extension higher & avoid a double correction lower.
Source: https://elliottwave-forecast.com/stock-market/xly-reacted-strongly-extreme-area/
On the date of publication, Elliott Wave Forecast did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article is solely for informational purposes. For more information please view the Barchart Disclosure Policy here.
