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E-mini Dow Jones Industrial Average (YM) Futures Analysis – May 1, 2019 Forecast

By:
James Hyerczyk
Updated: May 1, 2019, 06:46 UTC

Based on the early price action, momentum is clearly to the upside. Taking out 26694 will indicate the upside momentum is getting stronger. This could provide the strength to drive the Dow to its all-time high at 26988.

E-mini Dow Jones Industrial Average

June E-mini Dow Jones Industrial Average futures are trading higher early Wednesday. The rally was fueled by a spike in shares of Apple, a Dow component, after the close on Tuesday. Today’s move is actually a continuation of the after-hours rally. After the initial thrust to the upside, the early move seems to have stalled as investors prepare for the release of the U.S. Federal Reserve’s interest rate and monetary policy decisions at 18:00 GMT.

At 06:16 GMT, June E-mini Dow Jones Industrial Average futures are trading 26683, up 99 or +0.37%.

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

Daily Technical Analysis

The main trend is up according to the daily swing chart. A trade through 26694 will signal a resumption of the uptrend. The main trend will change to down on a move through 26060. I don’t think we have to worry about a change in trend at this time, but we could see a closing price reversal top due to the prolonged move up in terms of price and time. Furthermore, the Fed could say something that produces a higher-high, lower-close. This won’t change the trend either, but it could lead to a 2 to 3 day correction.

The minor trend is up. The minor trend changed to up on Tuesday. This shifted momentum to the upside. New minor bottoms were formed at 26398 and 26292.

The minor range is 26694 to 26292. Its 50% level or pivot at 26493 is support.

Another short-term range is 26060 to 26694. Its 50% to 61.8% zone at 26377 to 26302 is new support.

The main retracement zone support is 26036 to 25880.

Daily Technical Forecast

Based on the early price action, momentum is clearly to the upside. Taking out 26694 will indicate the upside momentum is getting stronger. This could provide the strength to drive the Dow to its all-time high at 26988.

If momentum shifts to the downside, then look for a pullback into the pivot formed by the short-term pivot at 26493 and the uptrending Gann angle at 26476. Watch for a technical bounce on the first test of this area.

If 26476 fails as support the look for the selling to possibly extend into a minor bottom at 26398 and 26292, and the retracement levels at 26377 and 26302.

Look for volatility and a possible two-sided trade with the release of the Fed decisions.

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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