E-mini Dow Jones Industrial Average (YM) Futures Analysis – April 4, 2018 Forecast

June E-mini Dow Jones Industrial Average futures are expected to open sharply lower based on the early trade. Given the price action and the possibility of a further decline, we’re going to take a look at the weekly chart today.

Weekly Technical Analysis

The main trend is up according to the swing chart. However, momentum has been trending lower since the formation of the closing price reversal top the week-ending February 2 and the secondary lower top the week-ending March 2. A trade through 23122 will indicate the selling is getting stronger.

The main range is 21150 to 26723. Its retracement zone at 23937 to 23279 is currently being tested. This zone is controlling the direction of the Dow.

Weekly Technical Forecast

Based on the early price action, the direction of the Dow futures contract the rest of the session is likely to be determined by trader reaction to the Fibonacci level at 23279.

Holding 23279 will indicate the presence of aggressive buyers. They are trying to defend the February low at 23122.

If they can generate enough upside momentum then look for them to go after the uptrending Gann angle at 23710. Overcoming this angle will indicate the buying is getting stronger. This could trigger a further rally into the 50% level at 23937 and the steep downtrending Gann angle at 24419.

The inability to overcome the angle at 23710 will signal the presence of sellers. A move under 23279 will indicate the selling is getting stronger.

If selling volume begins to increase then look for traders to go after 23122. We could see an acceleration to the downside under this level with the next target angle coming in at 22430. We could see a technical bounce on the first test of this angle, but if it fails then look for the selling to possibly extend into the next uptrending Gann angle at 21790. This is the last potential support angle before the 21150 main bottom.

Basically, look for an intraday upside bias to develop on a sustained move over 23710 and for the downside bias to continue on a sustained move under 23279.