Hello Traders! Today, we will look at the shorter cycles of The Real Estate ETF ($IYR) and explain why the sector should remain supported for the next few weeks. This is how we saw it in March 2023 expecting a bounce to take place first before lower again.
$IYR (Real Estate) 4H Elliott Wave Analysis May 1st 2023:
The bounce in red 2 is unfolding in a Zigzag (ABC) structure to correct the cycle against Feb 2023 peak. The first swing in black ((a)) unfolded in 5 waves from 3.24.2023 low which is an impulsive count. Corrections run in 3, 7 or 11 swings so the 5 waves higher gave a signal that we are going to remain supported against 3.24.2023 at $78.00. The ETF pulled back in 3 swings to correct the cycle against 3.24.2023 and ended ((b)) last week. From there, the ETF found buyers and made a new high above ((a)). That opened an incomplete bullish sequence to the upside. The next target area to the upside comes at $90.52 – 95.49 and that’s where sellers should be waiting to appear to resume the downside.