IYR Elliott Wave Analysis: Pullback can Provide Buying ChanceHello Traders,
In this Elliott Wave Analysis, we will have a look at the Real Estate ETF (IYR).
IYR ended the cycle from 03/23/18 (72.71) low at the peak of 07/06/18 (82.20) in blue wave (3). Below from there, the ETF ended the correction from 07/06/18 (82.20) peak in blue wave (4) at 79.23 low. Up from there, it broke already to new highs, confirming that the next extension higher has started.
Near-term IYR ended the correction from 07/06/18 (82.20) peak in blue wave (4) at 79.23 low. The internals of blue wave (4) unfolded as Elliott Wave double correction which ended red wave W at 07/18/18 low (79.76), red wave X pullback at 07/19/18 peak (81.26) and red wave Y of blue wave (4) at 07/25/18 (79.23).
Up from there, the ETF ended the cycle from 07/25/18 low in red wave A at 08/06/18 (82.50) peak. The internals of that move unfolded as a leading diagonal where it ended black wave ((i)) at 07/26/18 low (81.01), black wave ((ii)) pullback at 07/30/18 low (79.24), black wave ((iii)) at 07/31/18 peak (81.51), black wave ((iv)) at 08/01/18 low (80.15) and finally black wave ((v)) of red wave A at 08/06/18 peak (82.50). The ETF is currently in the progress of correcting the cycle from 07/25/18 low (79.23) in 3-7 or 11 swings in red wave B.
Near-term focus remains towards 81.03-80.81, which is 100%-123.6% Fibonacci extension area of black wave ((w))-((x)) to end red wave B pullback. Afterwards, the ETF is expected to find buyers for red wave B higher ideally or should do a 3 waves reaction higher at least. We don’t like selling it into a proposed pullback as the right side remains to the upside.