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E-mini Dow Jones Industrial Average (YM) Futures Analysis – June 29, 2018 Forecast

By:
James Hyerczyk
Published: Jun 29, 2018, 11:50 UTC

Based on the early trade, the direction of the September E-mini Dow Jones Industrial Average futures contract is likely to be determined by trader reaction to the main Fibonacci level at 24233.

E-mini Dow Jones Industrial Average

September E-mini Dow Jones Industrial Average futures are trading higher shortly ahead of the cash market opening. Increased appetite for risk and perhaps end-of-the-quarter position-squaring is helping to underpin the Dow.

At 1137 GMT, September E-mini Dow Jones industrial Average futures are trading 24326, up 106 or +0.44%.

E-mini Dow Jones Industrial Average
Daily September E-mini Dow Jones Industrial Average

Daily Technical Analysis

The main trend is down according to the daily swing chart. However, momentum shifted to the upside following Thursday’s closing price reversal bottom and subsequent confirmation earlier today.

If the reversal bottom gains traction, we could see the start of a 2 to 3 correction equal to at least 50% of the current 14 day sell-off.

The main range is 23500 to 25418. The market is currently straddling its retracement zone at 24459 to 24233. This zone is controlling the near-term direction of the market.

The short-term range is 25418 to 23978. Its retracement zone at 24698 to 24868 is the primary upside target. Since the main trend is down, sellers could come in on a test of this area.

Daily Technical Forecast

Based on the early trade, the direction of the September E-mini Dow Jones Industrial Average futures contract is likely to be determined by trader reaction to the main Fibonacci level at 24233.

A sustained move over 24233 will indicate the presence of buyers. If this move generates enough upside momentum then look for a possible rally into the 50% level at 24459, followed by a downtrending Gann angle at 24522.

The Gann angle at 24522 is a possible trigger point for an acceleration to the upside with the next major target coming in at 24698 to 24868.

A failure to hold 24233 and a sustained move under this level will signal the presence of sellers. This could drive the Dow into an uptrending Gann angle at 24140. If this angle fails then look for a possible spike into yesterday’s low at 23978.

Taking out 23978 will negate the reversal bottom and signal a resumption of the downtrend. This could lead to a test of a pair of uptrending Gann angles at 23820 and 23600. The latter is the last potential support angle before the 23500 main bottom.

About the Author

James is a Florida-based technical analyst, market researcher, educator and trader with 35+ years of experience. He is an expert in the area of patterns, price and time analysis as it applies to futures, Forex, and stocks.

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