Intercontinental Exchange (ICE) is in a long-term bullish Elliott Wave pattern, after a multi-year rise with higher highs and higher lows. A five-wave move completed into wave ((3)), followed by a corrective phase labelled wave ((4)).
Wave ((4)) is developing as an A-B-C correction, rather than being finished. Inside wave (B), price action forms a contracting triangle marked A-B-C-D-E, showing overlapping swings and falling volatility.
After the triangle in wave (B) ends, the structure points to another decline in wave (C) of ((4)). The chart projection places a potential end for wave ((4)) near 133.36, described as a support zone.
If wave ((4)) completes around 133.36, the next move is expected to be wave ((5)) to the upside. This would aim for new highs above the prior wave ((3)) peak.
In the near term, the triangle boundaries are the main levels to watch as the final swings form. The key invalidation level for this setup is 58.84, with the bullish structure remaining valid above that price.
We are observing a period of contracting volatility in Intercontinental Exchange, which is consistent with the identified triangle pattern. This suggests selling premium through strategies like short strangles could be advantageous for the immediate term, as the stock is likely to remain in a tightening range. For instance, average daily trading volumes on the NYSE have leveled off in the first quarter of 2026, a noticeable change from the more active markets we saw in late 2025.
As this consolidation phase nears its end, we anticipate one final downward push toward the 133 support level. Traders should prepare for this by considering the purchase of puts expiring in the coming weeks to capitalize on this expected dip. This potential move would align with the broader market digesting the Federal Reserve’s continued neutral stance, which has introduced some short-term hesitation among investors.
The $133 area represents a significant buying opportunity, as it likely marks the completion of the entire corrective wave. We should be ready to pivot from bearish to bullish strategies as the price approaches this zone, watching for signs that support is holding. At that point, buying call options or selling put credit spreads would become the primary strategy to ride the next major upward trend.
Looking further ahead, a successful test of this support should kick off the next major bullish phase, wave ((5)), which would target new highs above the peak reached back in 2025. We have seen similar patterns precede strong upward moves in the past, particularly after the periods of consolidation in 2022 and 2024. As long as the price remains well above the major support at 58.84, this long-term bullish outlook remains our primary view.
