In this technical blog, we’ll take a closer look at our Elliott Wave charts for the XLV ETF , published in the members’ area of our website. In the following analysis, we’ll review the past Elliott Wave structure and see how the market followed our outlook.
XLV Elliott Wave 1-Hour Chart 10.27.2026
The ETF completed a cycle from the 165.23 low with a five-wave advance, labeled as wave 3 on the chart. The current view suggests wave 4 is in progress, unfolding as an Expanded Flat pattern. One more leg lower is needed to complete the five-wave structure within the ((c)) leg.
It is important to understand that we do not rely on Elliott Wave analysis in isolation. We combine it with cycle analysis and market correlations, examining multiple time frames to develop a clearer picture of market behavior.
This combined approach allowed us to anticipate the bearish continuation and identify the downside target zone in advance.
In an Expanded Flat pattern, wave B moves beyond the starting point of wave A, making a new extreme before wave C resumes in the opposite direction.
You can learn more about Elliott Wave Patterns at our Free Elliott Wave Educational Web Page
XLV Elliott Wave 1-Hour Chart 11.02.2026
A few days later, the ETF staged a decent rally. It made another low, completing the five-wave structure within wave (c) of the Expanded Flat pattern, and then rallied as expected.
The current view suggests we could see another high before a more significant pullback unfolds in wave ((iv)). Some of the wave labels have been adjusted compared to the previous count.
Important note: Keep in mind that the market is dynamic, and the outlook may have changed in the meantime. Our member Chat Rooms are open 24 hours a day, Monday through Friday, on trading days, providing ongoing expert guidance on market trends and Elliott Wave analysis. Members can ask questions about market structure and technical setups at any time during trading days.
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