SOXX Nearing Completion Of A Market Cycle From December 2018

SOXX is a semiconductor ETF that provides concentrated exposure to the 30 largest US-listed semiconductor companies. This includes manufacturers of materials with semiconductors that are used in electronic applications or in LED and OLED technology, and providers of services or equipment associated with semiconductors.

SOXX Daily Chart

SOXX Daily Chart

The market cycle we will discuss began on December 2018, when SOXX found support at $144.79. The ETF saw bullish momentum, and it has been building an impulse that could end at any moment. The wave ((1)) of the impulse ended at $269.36. The pullback made a zig-zag correction, completing at $167.79 at wave ((2)).

Wave ((3)) started a powerful rally, reaching $443.97 in less than a year. The wave ((4)) correction dropped to 23.6% Fibonacci retracement from wave ((2)) at $386.02, creating an irregular flat structure. From May 2021, we have seen wave ((5)) developing to complete the whole cycle from 2018.

Elliott Wave Theory Motive Wave Structure

Elliott Wave Impulse

SOXX Last Wave and Target

SOXX began the last 5 swings at the $386,02 level. Wave (1) ends at $476.53 with a 'Leading Diagonal' structure, before pulling back as wave (2) created an irregular flat ending at around $433.26. A nice rally sent the ETF to the $548.12 level and completed the third swing.

We have entered into a range phase that serves as wave ((4)). This wave could finish at $514.92, but we cannot rule out reaching to around the $514.03 level to complete a flat correction before beginning the last rally we are expecting.

Therefore, the rally may begin this December and we are targeting the $556.57 – $584.61 area. In that area, the cycle from 2018 should end and wave ((5)) should finish. After completing this, we may see swing corrections that could send the ETF to around $375.00. Keep an eye on this movement.

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