Advertisement
Advertisement

E-mini Dow Jones Industrial Average (YM) Futures Analysis – April 25, 2017 Forecast

By:
James Hyerczyk
Updated: Apr 25, 2017, 14:14 UTC

June E-mini Dow Jones Industrial Average futures are trading higher shortly before the cash market open. The market accelerated to the upside after

Stocks Weekly

June E-mini Dow Jones Industrial Average futures are trading higher shortly before the cash market open. The market accelerated to the upside after overtaking a key retracement zone and a former main top. This indicates strong buying, but traders are going to have to keep buying strength in order to sustain the upside momentum.

E-mini Dow Jones Industrial Average
Daily June E-mini Dow Jones Industrial Average

Technical Analysis

The main trend is up according to the daily swing chart. The trend turned up on Monday when the index crossed 20584. It was reaffirmed when buyers took out 20828 earlier today.

If the upside momentum continues then look for buyers to go after the minor top at 20981. This is followed by the contract high at 21106.

The main range is 21106 to 20311. Its retracement zone is 20709 to 20802. Holding above this zone will help maintain the strong upside bias. These two levels are new support.

Forecast

Based on the current price at 20842, the direction of the Dow today is likely to be determined by trader reaction to the major Fibonacci level at 20802.

A sustained move over 20802 will signal the presence of buyers. However, we’re going to need to see rising volume in order to maintain the strong upside momentum.

The first sign of weakness today will be a pullback under the old top at 20828. This will be a sign that today’s earlier surge was fueled by short-covering rather than new buying.

A break below 20802 will indicate the selling is getting stronger. This could trigger an acceleration into the 50% level at 20709.

If 20709 fails as support then look out to the downside. We could see the start of a correction into at least 20588.

About the Author

James is a Florida-based technical analyst, market researcher, educator and trader with 35+ years of experience. He is an expert in the area of patterns, price and time analysis as it applies to futures, Forex, and stocks.

Did you find this article useful?

Advertisement