E-mini Dow Jones Industrial Average (YM) Futures Analysis – August 28, 2017 Forecast

September E-mini Dow Jones Industrial Average futures are expected to open higher based on the pre-market trade. Investors are reacting to the news that President Trump will announce his long awaited tax reform plan later in the week. However, traders are also keeping an eye on the situation in Texas and its potential impact on the oil sector.

Technical Analysis

The main trend is down according to the daily swing chart. However, momentum has been trending higher since the formation of the closing price reversal bottom at 21579 on August 21.

A trade through 21900 will indicate the buying is getting stronger, but the trend won’t change to up until 22067 is taken out. A move through 21579 will signal a resumption of the downtrend.

On the downside, the support zone is 21740 to 21702. Aggressive counter-trend buyers are defending this zone in an effort to form a secondary higher bottom.

The resistance is a series of retracement levels at 21823, 21856, 21881 and 21921.

The trigger point for an acceleration to the upside is 21921.

Forecast

The direction of the index the rest of the session is likely to be determined by trader reaction to the 50% level at 21823.

A sustained move over this level will indicate the presence of buyers, but look for a labored rally until buyers can take out 21921.

The inability to overtake 21921 will signal the presence of sellers. This could trigger a hard break into 21740 to 21702.

The trigger point for an acceleration to the downside is 21702. The next major target under this level is 21579.