Looking at the Short Term Elliott Wave View in E-Mini Dow Jones Futures (YM), the analysis suggests that the trend is set to continue higher within the sequence initiated from the April 2024 low as part of the daily sequence. This viewpoint favors the upside potential in wave 5 of (5) since the 18th of April, 2024 low, with the condition that any downward moves should remain above the 40053 low.
Wave Count and Corrections
Starting from the April 2024 low of (4), the wave count placed 1 at 40213 high, 2 at 38111 low as dip pullback, and 3 at 41672 high. The subsequent wave 4 was identified as a clear 3-swing zigzag pullback at 40053 low. The analysis now suggests an upside potential in wave 5 to confirm the bullish sentiment, as long as the price remains above the 41672 high to avoid the scenario of a double correction.
Correction Structure
Within the wave 4 correction, the analysis placed ((a)) at 40466 low, ((b)) at 40795 high, and ((c)) at 40053 low. It was noted that the correction missed the equal leg areas before the price resumed its upward trajectory. Looking at the sub-wave structure, ((i)) of 5 was identified at 41051 high, indicating a corrective pullback in ((ii)), which is expected to hold above the 40053 low to validate an extension in ((iii)).
Within the sub-wave ((i)), the analysis outlined (i) at 40685 high, (ii) at 40158 low, (iii) at 41029 high, (iv) at 40863 low, and finally (v) at 41051 high as ((i)). It further identified (a) of ((ii)) at 40606 low, suggesting a potential bounce in (b) before a downward move in (c) to complete ((ii)). The key takeaway is the significance of staying above the 40053 low for the price action to resume higher in wave 5, potentially targeting the 42052 – 42671 area to complete the impulse wave initiated from the April 2024 low.
However, a break below the 40053 low could open the door for a double correction towards 39432 or even lower levels before the price reverses its direction higher. This alternative scenario underscores the importance of monitoring the key support level to gauge the potential outcomes in the E-Mini Dow Jones Futures market.
The Short Term Elliott Wave View in E-Mini Dow Jones Futures presents a roadmap for potential price movements, highlighting the importance of key levels and wave structures in deciphering the future trend direction. Traders and investors are advised to remain vigilant and adapt their strategies based on the evolving market dynamics.
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