Within our Group 3 journal we have been calling to go long on XLE as it was due to enter our wave 2 box – which it did yesterday.
Before we formed our blue box, we saw wave 1 unfold to the upside. This gave us a good indication that the extreme zone of wave 2 would be a good place to go long in order to catch wave 3.
XLE – 30 minute – 9th March 2022
As per our pre-open chart above, we can see that once we developed wave ((a)) and ((b)), we decided to figure out the blue box zone by determining ((c)) to be based of equality of wave ((a)). This price was between 73.56 – 70.53.
As you can see from our chart that we in fact did touch the equal leg to the tick and have been playing the advance ever since then. Currently, as I type this this trade is now risk free as we have taken half of the position once it reached 50% of wave ((c)). We remain bullish on XLE if price is held above 73.50 – otherwise we would be possibly entering back into wave 2 corrective cycle.
XLE – 30 minute – 11th March 2022
XLE ever since has been supporting wave ii and the make it or break it would be determined based on where wave ii completes. As mentioned above ideally above 73.48. Into next week we should expect this to climb further to the upside in a 5 wave sequence to complete wave 3 on a higher degree.