Elliott Wave View: Energy ETF (XLE) Wave 5 In ProgressShort-term Elliott wave view in Energy ETF (XLE) shows a 5 waves impulse structure from August 19, 2021 low. Up from there, wave 1 ended at 49.69 and pullback in wave 2 ended at 46.47. The ETF then extended higher in wave 3 towards 59.41 and pullback in wave 4 is also proposed complete at 57. The 1 hour chart below shows the internal subdivision of wave 4 as a zigzag Elliott Wave structure.
Down from wave 3, wave (i) ended at 58.78 and rally in wave (ii) ended at 59.36. Wave (iii) ended at 58.50, rally in wave (iv) ended at 58.94, and final leg lower wave (v) ended at 57.94. This completed wave ((a)) of 4 in higher degree. The ETF then bounced in wave ((b)) of 4 which ended at 58.82. Wave ((c)) of 4 lower completed at 57 with internal subdivision also as a zigzag.
The ETF has turned higher in wave 5, but it still needs to break above wave 3 at 59.41 to avoid a double correction. Up from wave 4, wave (i) ended at 57.79, pullback in wave (ii) ended at 57.23, wave (iii) ended at 58.03, wave (iv) ended at 57.75, and wave (v) higher ended at 58.35. This completed wave ((i)) in higher degree. Pullback in wave ((ii)) ended at 57.23. Up from there, wave (i) of ((iii)) ended at 58.62. Near term, while dips stay above 57, expect the ETF to extend higher.
