E-mini Dow Jones Industrial Average (YM) Futures Analysis – August 21, 2017 Forecast

September E-mini Dow Jones Industrial Average futures are expected to open steady based on the pre-market trade. There are no major economic events today so the market is likely to be news driven.

Technical Analysis

The main trend is up according to the weekly chart. However, momentum has been trending lower since the formation of the closing price reversal top at 22132 the week-ending August 4.

The short-term range is 21138 to 22132. Its retracement zone at 21635 to 21518 is the primary downside target. The upper or 50% level of this range was tested last week and earlier today.

The main range is 20274 to 22132. If the selling pressure increases over the near-term then its retracement zone at 21203 to 20984 will become the next downside target.

Forecast

Based on the earlier price action, the key area to watch is the price cluster formed by the uptrending angle at 21650 to 21635.

A sustained move over 21650 will indicate the presence of buyers. This may generate the upside momentum needed to challenge the steep downtrending angle at 21876.

A sustained move under the 50% level at 21635 will signal the presence of sellers. The daily chart opens up to the downside under this level with the next target the Fibonacci level at 21518. This is followed by an uptrending angle at 21426.

Watch the price action and read the order flow at 21650 to 21635 all week. Trader reaction to this area will tell us if buyers have returned, or if sellers are increasing pressure.