E-mini Dow Jones Industrial Average (YM) Futures Analysis – July 16, 2018 Forecast

The blue chip Dow are posting a two-sided trade on Monday shortly after the opening and as we near the mid-session. Earlier in the session, the Dow moved higher in reaction to the momentum from last week’s strong performance, but prices began to retreat after technology and energy stocks turned lower.

At 1529 GMT, September E-mini Dow Jones Industrial Average futures are trading 25007, up 3 or +0.01%.

Daily Technical Analysis

The main trend is down according to the daily swing chart. However, momentum is trending higher. If the upside momentum continues then we should eventually see a test of the last main top at 25418.

The big concern at this time is whether the prolonged rally in terms of price and time will continue without a meaningful short-term correction.

Based on the earlier higher-high, the direction of the Dow futures contract the rest of the session will be determined by trader reaction to Friday’s close at 25004. Trader reaction to this price will determine whether we’ll move higher, or form a closing price reversal top.

On the downside, potential targets include a major Fibonacci level at 24868, a minor 50% level at 24851, a minor Fibonacci level at 24794 or a major 50% level at 24698.

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 should be determined by trader reaction to Friday’s close at 25004.

A sustained move over 25004 will indicate the presence of buyers. Overtaking the downtrending Gann angle at 25034 and today’s intraday high at 25090 will indicate the buying is getting stronger. This could fuel an acceleration into the next downtrending Gann angle at 25226.

A sustained move under 25004 will signal the presence of sellers. This could lead to the formation of a closing price reversal top and the start of a 2 to 3 day correction.

The first targets are layered at 24868, 24851 and 24794. This is followed by a support cluster at 24698 to 24682.

Since the main trend is up, buyers could come in on a test of any of the support levels.