SPDR Select Sector Fund – Energy Select Sector ETF – XLE (1D) Elliott Wave Technical Analysis

Function: Major trend

Mode: Motive

Structure: Impulse wave

Position: Wave (5)

Direction: Uptrend

Details:

The wave (4) decline has found its bottom, and the current upward movement marks the early stages of wave (5).

This rally could represent either wave 1 or [i] of (5), suggesting a lengthy development.

We anticipate the rally to surpass the $97.92 high comfortably.

Although wave (4) could evolve into a more complex correction, adhering to Occam’s Razor remains the preferred approach.

Invalidation level: $74.49

(Click on image to enlarge)

SPDR Select Sector Fund – Energy Select Sector ETF – XLE (4H) Elliott Wave Technical Analysis

Function: Major trend

Mode: Motive

Structure: Impulse

Position: Wave iii

Direction: Rally

Details:

Wave iii has commenced and is expected to extend, with a potential leading diagonal forming.

The $76.00 level is crucial for gauging any downside movement.

The ongoing wave [2] correction should end within the highlighted Fibonacci levels.

Once the correction concludes, a rally confirmed by surpassing $83.19 should follow.

Optimal entry strategy: wait for a throwback before considering long positions.

Invalidation level: $74.49

(Click on image to enlarge)

Conclusion
The overall summary of the Elliott Wave analysis:

The 4th wave has concluded, and we are transitioning into the 5th wave, which should be impulsive and reach new highs.

$74.49 remains the critical invalidation point for any downward movement.

After a minor wave [2] pullback that does not invalidate the count, a long position is advised.

Strict compliance with Elliott Wave principles and monitoring invalidation levels are crucial to avoid unnecessary trading losses.

Technical Analyst: Simon Brooks

Source:
Visit Tradinglounge.com and learn from the experts. Join TradingLounge here.

More By This Author:

British Pound/ U.S. Dollar Forex Elliott Wave Technical Analysis
Cochlear Limited - COH Stock Analysis & Elliott Wave Technical Forecast
Elliott Wave Technical Analysis: Ripple Crypto Price News For Thursday, May 1