E-mini Dow Jones Industrial Average (YM) Futures Analysis – July 19, 2018 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 25161. Today’s session begins with the Dow up 14 days from the last main bottom. This makes it vulnerable to a potentially bearish closing price reversal top. This chart pattern is taking place shortly before the cash market opening. If confirmed, it could lead to the start of a 2 to 3 day correction.
James Hyerczyk
E-mini Dow Jones Industrial Average
E-mini Dow Jones Industrial Average

September E-mini Dow Jones Industrial Average futures are expected to open about 100 points lower based on the pre-market trade. Some of the selling may be related to the news that Comcast dropped its pursuit of its bid for 21st Century Fox assets.

On Thursday, investors are likely to react to earnings results and trade talk. Earlier in the session, shares of IBM jumped 2.5 percent on better than expected earnings and revenue. However, this may have been offset by mixed results from American Express. Its shares fell more than 2 percent before the opening bell.

Daily September E-mini Dow Jones Industrial Average

Daily 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 on June 28. A trade through 25418 will change the main trend to up.

Today’s session begins with the Dow up 14 days from the last main bottom. This makes it vulnerable to a potentially bearish closing price reversal top. This chart pattern is taking place shortly before the cash market opening. If confirmed, it could lead to the start of a 2 to 3 day correction.

The minor trend is up. This is helping to boost the upside momentum. A trade through 24611 will change the minor trend to down. It will also shift momentum to the downside.

The short-term range is 24611 to 25209. Its retracement zone target is 24910 to 24839.

The main range is 25418 to 23978. Its retracement zone is 24868 to 24698.

Combining the two retracement zones creates a potential support cluster at 24910 to 24839. Since the main trend is up, buyers could return on a test of this area.

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 25161.

A sustained move under 25161 will indicate the presence of sellers. This will also put the Dow in a position to form a potentially bearish closing price reversal top. If the downside momentum continues then look for a test of the downtrending Gann angle at 24986.

If 24986 fails to hold then look for the selling to continue into 24910, 24868 and 24839. An uptrending Gann angle also pierces this area at 24874, making it a valid downside target. Watch for buyers to show up on a test of this area.

A sustained move over 25161 will signal the return of buyers. This could lead to a retest of the downtrending Gann angle at 25202, followed by today’s intraday high at 25209. Taking out this high will signal a resumption of the uptrend with the next target angle coming in at 25310. This is the last potential resistance angle before the 25418 main top.

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