Xcel Energy (XEL) In Early Stages of a Powerful Wave (III) Rally

NASDAQ-listed XEL completes corrective wave (II) at $43.64 and turns higher, signaling the beginning of a potentially explosive impulsive advance.

Xcel Energy Inc (XEL), listed on the NASDAQ, is showing a compelling bullish Elliott Wave structure on the long-term chart. The technical outlook suggests the stock is transitioning into a powerful impulsive phase, with higher highs expected in the coming quarters. From the early 2000s, XEL has developed a clear five-wave impulsive structure at higher degree. The stock completed a large degree wave III advance followed by a complex wave IV correction. After finishing wave IV, price resumed higher in wave V, completing a major cycle top before entering a corrective sequence.

That corrective phase unfolded as a three-wave structure labeled a-b-c of cycle degree. The decline concluded with wave c terminating near the $43.64 level, which now acts as the key invalidation level. This zone represents the completion of blue wave (II), confirming that the broader bullish trend remains intact as long as price holds above this area.

Early Stages of a Strong Impulse

Following the completion of wave (II), XEL has turned higher decisively. The current rally indicates that the stock has entered the early stages of wave I of (III), typically the strongest and most dynamic phase in an Elliott Wave cycle.

On the lower degree, five waves have already been completed in wave ((1)), followed by a corrective pullback in wave ((2)). The stock is now turning higher again, suggesting the beginning of wave ((3)), which is generally the strongest and most extended segment within an impulse.

This alignment across multiple degrees significantly strengthens the bullish outlook.

Why Selling Is Not Recommended

Given the completed corrective structure and the emerging impulsive advance, selling at current levels is not technically justified. The chart structure favors trading in the direction of the prevailing uptrend rather than attempting counter-trend positions.

As long as price remains above $43.64, the bullish wave count remains valid. A sustained move higher would confirm that wave (III) is underway, potentially leading to an extended rally beyond recent highs.

Technical Outlook

• Invalidation Level: $43.64
• Trend Bias: Bullish
• Wave Position: Early stage of wave I of (III)
• Structure: Impulsive with completed five-wave lower degree advance

Overall, XEL appears positioned for a strong upside continuation, supported by a well-defined Elliott Wave structure and multi-degree alignment favoring further gains.

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