Dow Futures (YM_F): Buying the dips at the blue box area

Hello fellow traders. In this technical article we’re going to take a look at the Elliott Wave charts charts of Dow Jones Futures published in members area of the website.  As our members know YM_F has recently  made pull back that has unfolded as Elliott Wave Zig Zag pattern. It made clear 3 waves down from the February 23rd peak and completed correction right at the Equal Legs zone ( Blue Box -Buying Area) . In further text we’re going to explain the  Elliott Wave pattern  and trading setup.

YM_F Elliott Wave one-hour chart 03.05.2024

Dow Jones Futures is showing lower low structure from the peak. Correction has a b c labeling, when we can still be in c red leg. The price structure is incomplete at the moment, calling for a more downside in near term toward : 38604-38471 buying zone. We don’t recommend selling YM_F and prefer the long side from the marked Blue Box ( buying zone). Once Dow Jones reaches our buying area, it should ideally make either rally toward new highs or in 3 waves bounce alternatively. Once bounce reaches 50 Fibs against the b red high, we will make long position risk free ( put SL at BE) and take partial profits.

Quick reminder on how to trade our charts :

Red bearish stamp+ blue box = Selling Setup
Green bullish stamp+ blue box = Buying Setup
Charts with Black stamps are not tradable.

YM_F Elliott Wave one-hour chart 03.09.2024

Dow Jones made extension toward our buying zone at : 38604 – 38471 as we expected. YM_F found buyers at the blue box and we are getting good reaction from there. Consequently, any long positions from the equal legs area should be risk free by now. As far as the price stays above 38473 low, we can see further strength in Dow Jones toward new highs ideally.

Keep in mind that market is dynamic and presented view could have changed in the mean time.