E-mini Dow Jones Industrial Average (YM) Futures Analysis – Important Decision Coming on Test of 25242 to 25164

E-mini Dow Jones Industrial Average futures are trading slightly higher during the pre-market session. There has been no follow-through to the downside after yesterday’s sell-off.

At 0612 GMT, September E-mini Dow Jones Industrial Average futures are trading at 25305, up 20 or +0.08%.

Daily Swing Chart Technical Analysis

The main trend is up according to the daily swing chart. However, momentum shifted to the downside on Friday with the formation of a closing price reversal top and the subsequent confirmation on Monday.

A trade through 25572 will negate the reversal top and signal a resumption of the uptrend. The main trend will change to down on a trade through 24912.

The market is currently trading inside a major retracement zone at 24925 to 25337. Trader reaction to this zone will determine the longer-term direction of the index.

The short-term range is 24912 to 25572. Its retracement zone at 24242 to 25164 is the first downside target. Since the main trend is up, buyers could show up on a test of this zone.

The main range is 23978 to 25572. If the trend changes to down then look for a test of its retracement zone at 24775 to 24587.

Daily Swing Chart Technical Forecast

Based on the early trade, the direction of the September E-mini Dow Jones Industrial Average on Tuesday is likely to be determined by trader reaction to the major Fibonacci level at 25337.

A sustained move under 25337 will indicate the presence of sellers. This could fuel a quick break into 25242 then 25164.

The daily chart is wide open under 25164 with 24925 and 24912 the next targets.

A sustained move over 25337 will signal the presence of buyers. If this generates enough upside momentum we could see a test of last week’s high at 25572. This is a potential trigger point for an acceleration to the upside with the February 27 top at 25868 the next likely target.

Our bigger moves will occur today if buyers can take out 25572 or sellers can take out 25164. Otherwise, we could see a choppy trade.