XLF Financial Sector ETF Breaks Out — New Highs From Our Buying Zone

In this technical article, we take a quick look at the Elliott Wave charts of the XLF Financial Sector ETF published in members' area of the website. The ETF has recently given us a clear 3-wave pullback and found buyers again precisely at the equal legs area as we expected. In the following sections, we break down the Elliott Wave trading setup and present key targets and the broader forecast.

XLF Elliott Wave 1  Hour  Chart 06.18.2026

The ETF is forming a 3-wave pullback, unfolding as a Double Three pattern. The structure suggests more weakness toward the Equal Legs area at 53.62-53.00.  We expect at least a three-wave bounce from the Blue Box area. Once the price reaches the 50% Fibonacci retracement against the (b) blue connector, we will make the position risk-free by moving the stop loss to breakeven and booking partial profits. Trade invalidation would occur on a break below the 1.618 Fibonacci extension, in this case, the 53.0 level.

XLF Elliott Wave 1  Hour  Chart 06.18.2026

XLF ETF completed its correction above the invalidation level and produced a strong reaction higher from our buying zone. The price has broken toward new highs, confirming further upside extension. The ETF is now targeting the 55.29–55.92 area. From this zone, buyers may take profits, and we could see a three-wave pullback, which may provide new buying opportunities.