In this technical blog, we will look at the past performance of the 4-hour Elliott Wave Charts of XLV. We presented to members at the elliottwave-forecast. In which, the rally from 27 October 2023 low unfolded as an impulse structure. And showed a higher high sequence favored more upside extension to take place. We will explain the structure & forecast below:
Here’s the 4-hour Elliott wave chart from the 12/20/2023 update. In which, the cycle from the 11/10/2023 low ended in wave (3) as an impulse structure at $136.77 high. Down from there, the ETF made a pullback in wave (4) to correct that cycle. The internals of that pullback unfolded as Elliott wave zigzag structure where wave A at $133.43 low. Wave B ended at $134.86 high and wave C managed to reach the equal legs area of A-B at $131.52- $129.46. From there, buyers were expected to appear looking for the next leg higher or for a 3-wave bounce minimum.
Above is the Latest Elliott wave Chart from the 1/02/2024 update. In which the XLV is showing a reaction higher taking place from the equal legs area. Right after ending the zigzag correction. Since then the ETF has managed to make a new high above $136.77 confirming the next extension higher.