SPDR Select Sector Fund – Energy Select Sector ETF – XLE (one-day) Elliott Wave technical analysis
Function:Major trend.
Mode:Motive.
Structure:Impulse wave.
Position:Wave (5).
Direction:Uptrend.
Details:
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The wave (4) decline has found its bottom, and the current upward movement marks the early stages of wave (5).
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This rally could represent either wave 1 or [i] of (5), suggesting a lengthy development.
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We anticipate the rally to surpass the $97.92 high comfortably.
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Although wave (4) could evolve into a more complex correction, adhering to Occam’s Razor remains the preferred approach.
Invalidation level:$74.49
SPDR Select Sector Fund – Energy Select Sector ETF – XLE (four-hour) Elliott Wave technical analysis
Function:Major trend.
Mode:Motive.
Structure:Impulse.
Position:Wave iii.
Direction:Rally.
Details:
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Wave iii has commenced and is expected to extend, with a potential leading diagonal forming.
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The $76.00 level is crucial for gauging any downside movement.
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The ongoing wave [2] correction should end within the highlighted Fibonacci levels.
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Once the correction concludes, a rally confirmed by surpassing $83.19 should follow.
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Optimal entry strategy: wait for a throwback before considering long positions.
Invalidation level:$74.49
Conclusion
The overall summary of the Elliott Wave analysis:
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The 4th wave has concluded, and we are transitioning into the 5th wave, which should be impulsive and reach new highs.
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$74.49 remains the critical invalidation point for any downward movement.
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After a minor wave [2] pullback that does not invalidate the count, a long position is advised.
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Strict compliance with Elliott Wave principles and monitoring invalidation levels are crucial to avoid unnecessary trading losses.
SPDR Select Sector Fund – Energy Select Sector ETF – XLE Elliott Wave technical analysis [Video]
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