XLF Reaches New Heights: Blue Box Area Proves Pivotal

In this technical blog, we will look at the past performance of the 1-hour Elliott Wave Charts of XLF. We presented to members at the elliottwave-forecast. In which, the rally from the 07 April 2025 low is unfolding as an impulse structure. Also showed a higher high sequence suggested that ETF should see more upside extension to complete the impulse sequence. Therefore, we advised members not to sell the ETF & buy the dips in 3, 7, or 11 swings at the blue box areas. We will explain the structure & forecast below:

XLF 1-Hour Elliott Wave Chart From 7.15.2025

Here’s the 1-hour Elliott wave chart from the 7.15.2025 Midday update. In which, the short-term cycle from the 4.10.2025 low ended in wave 3 as impulse at $53.29 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 double three structure where wave ((w)) ended at $52.14 low. Wave ((x)) bounce ended at $52.76 high. Then wave ((y)) managed to reach the blue box area at $51.59- $50.87. From there, buyers were expected to appear looking for the next leg higher or for a 3 wave bounce minimum.

XLF 1-Hour Elliott Wave Chart From 7.28.2025

This is the 1-hour Elliott wave Chart from the 7.28.2025 Midday update. In which the ETF is showing a reaction higher taking place, right after ending the double correction within the blue box area. Allowed members to create a risk-free position shortly after taking the long position at the blue box area. Since then, XLF has already made a new high targeting $53.78- $54.54 area higher minimum before profit taking & next pullback takes place in 3, 7 or 11 swings.

Source: https://elliottwave-forecast.c...