XLE: Rising Wave Pattern

2 Okt

Technical analysis chart of the Energy Select Sector SPDR Fund (XLE), with Elliott wave analysis overlaid. Let's break down the analysis based on the chart and labels:

Overall Analysis:

The chart suggests a bullish trend for XLE, based on the Elliott wave structure. It indicates that we have completed wave ((4)) of wave V and are now in the unfolding wave ((5)). Within wave ((5)), we have started wave (1), and are currently in wave (3) of (1).

Wave Counts and Labels:

V Red: This represents the fifth and final wave of a larger Elliott wave pattern.
((4)) Black: The fourth corrective wave within V.
((5)) Black: The fifth and final impulsive wave within V.
(1) Blue: The first impulsive wave within ((5)).
1 Red: The first wave within (1).
2 Red: The second corrective wave within (1).
3 Red: The third impulsive wave within (1) (currently unfolding).

Price Projection and Invalidation as per Waves:

Bullish Projection: The chart suggests a potential target of 105 for wave ((5)).
Invalidation Level: A break below 83.02 would invalidate the current bullish analysis.

Educational Notes:

Elliott wave theory is a technical analysis tool that identifies patterns in price movements based on a series of five waves.

Impulsive waves (1, 3, 5) move in the direction of the overall trend, while corrective waves (2, 4) move in the opposite direction.

Wave labels use brackets to indicate different levels of analysis. For example, ((5)) is a larger wave than (1).

Colors are often used to visually differentiate between different waves and patterns.

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Hope this post is helpful to community
Thanks
RK💕

Disclaimer and Risk Warning.

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