E-mini Dow Jones Industrial Average (YM) Futures Analysis – August 17, 2018 Forecast

September E-mini Dow Jones Industrial Average futures are trading lower shortly before the cash market opening. Earlier in the session, investors made a run at the August 7 top at 25661, but the move fell short. However, the market is still in a position to close higher for the week.

Daily Technical Analysis

The main trend is up down according to the daily swing chart. It turned down on Wednesday when sellers took out the swing bottom at 25087. A trade through 25661 will change the main trend to up.

Today’s early price action has put the Dow in a position to post a closing price reversal top. This chart pattern will indicate the selling is greater than the buying at current price levels.

The short-term ranges are 25661 to 24955 and 24955 to 25757. If today’s sell-off gains traction then look for the selling to extend into the retracement zone at 25308 to 25219.

Daily Technical Forecast

Based on the early price action, the direction of the September E-mini Dow Jones Industrial Average the rest of the session is likely to be determined by trader reaction to yesterday’s close at 25592.

A sustained move under 25592 will signal the presence of sellers. This will also put the Dow in a position to form a potentially bearish closing price reversal top. This could lead to a 2 to 3 day break with the first target zone 25308 to 25219. This is followed by the long-term uptrending Gann angle at 25098.

The Gann angle at 25098 has been controlling the direction of the Dow futures contract since June 28.

A sustained move over 25592 will indicate the presence of buyers. This should create the upside momentum needed to overcome the intraday high at 25657 and the main top at 25661.

Taking out 25661 will change the main trend to up and could trigger an acceleration to the upside.