E-mini Dow Jones Industrial Average (YM) Futures Analysis – June 26, 2017 Forecast

September E-mini Dow Jones Industrial Average futures are expected to open sharply higher based on the pre-market trade. Higher crude oil prices are helping to generate the upside momentum. Traders are also ignoring the weaker-than-expected Durable Goods report. Orders for durable goods fell in May for the second month in a row and registered the biggest drop in six months.

Technical Analysis

The main trend is up according to the daily swing chart. A trade through 21494 will signal a resumption of the uptrend.

Today’s price action helped form a new minor bottom at 21282. A trade through this level will change the minor trend to down.

The intermediate range is 21065 to 21494. Its retracement zone is 21280 to 21229. This zone provided support last week and remains support today.

The short-term range is 21494 to 21282. Its 50% level or pivot is 21388. The market is trading on the strong side of the pivot, giving the Dow an upside bias.

Forecast

Based on the current price at 21418, the direction of the Dow is likely to be determined by trader reaction to the pivot at 21388.

A sustained move over 21388 will indicate the presence of buyers. This could generate enough upside momentum to challenge a pair of downtrending angles at 21430 and 21462. The latter is the last potential resistance angle before the 21494 main top.

A sustained move under 21388 will signal the presence of sellers. This could drive the Dow into the downtrending angle at 21366.

Crossing to the weak side of the 21366 downtrending angle could trigger a sharp break into the support cluster at 21280, 21279 and 21273.

Taking out 21273 could drive the market into the Fibonacci level at 21229. The daily chart begins to open up to the downside under this level. The chart indicates there is room to break into 21065.

Look for an upside bias as long as the Dow remains over 21388.