XLK Elliott Wave Analysis Suggesting More Upside
In this analysis, we will have a look at the Technology .
The ended the cycle from 06/28/18 low in red wave 1 at the peak of 07/25/18 (74.26). The internals of red wave 1 unfolded as a 5 wave impulsive structure. Where black wave ((i)) ended at 06/29/18 peak (70.08), black wave ((ii)) pullback at 07/02/18 (68.73). Followed by an extended black wave (( iii )), where the internals also unfolded in a 5 waves structure. Black wave (( iii )) ended at 07/13/2018 peak (72.72) and black wave ((iv)) pullback at 07/16/2018 (71.68) followed by black wave ((v)) of red wave 1 which ended at 07/25/18 peak (74.24).
Below from that peak, the correction in red wave 2 ended at 07/30/18 low (70.30). The internals of red wave 2 unfolded as Flat structure where it ended black wave ((a)) at 07/26/18 low (72.68), black wave ((b)) pullback at 07/26/18 peak (73.35) and black wave ((c)) of red wave 2 at 07/30/18 low (70.30). Up from there, it ended the cycle from 07/30/18 low at the peak of 08/09/18 (73.91) in black wave ((i)). Below from there, it is currently in the progress of correcting the cycle from 07/30/18 low in 3-7 or 11 swings before moving higher again.
Near-term focus will be on the 100%-123.60% equal legs extreme area of 72.45-72.15 from 08/09/18 peak where we expect a reaction higher for new highs or at least a 3 wave’s bounce. We don’t like selling it and prefer more upside as long as the at 68.28 low in our distribution system stays intact.