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E-mini Dow Jones Industrial Average (YM) Futures Analysis – Strengthens Over 25072, Weakens Under 24825

Based on last week’s close at 25004, the direction of the September E-mini Dow Jones Industrial Average this week will be determined by trader reaction to the 50% level at 24925.
James Hyerczyk
E-mini Dow Jones Industrial Average
E-mini Dow Jones Industrial Average

E-mini Dow Jones Industrial Average futures closed sharply higher last week, driven by increased appetite for risky assets as investors shrugged off the growing tensions between the United States and China over trade, choosing instead to focus on second-quarter earnings and revenue season, which began last week.

September E-mini Dow Jones Industrial Average futures settled last week at 25004, up 548 or 2.24%.

Weekly September E-mini Dow Jones Industrial Average

Weekly Technical Analysis

The main trend is up according to the weekly swing chart. The uptrend will be reaffirmed when buyers take out 26672. Due to an unusual chart pattern, the trend won’t change to down unless 22009 is violated.

The minor trend is actually down. A trade through 25418 will change the minor trend to up. A move through 23978 will signal a resumption of the minor downtrend.

The main range is 22009 to 26672. The market is currently trading on the strong side of its retracement zone at 24341 to 23790. This is helping to generate an upside bias.

The short-term range is 26672 to 23178. Its retracement zone is 24925 to 25337. This zone stopped the rally at 25418 last month. Last week’s close was inside this zone. This zone is the next hurdle to overcome for bullish investors.

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Weekly Technical Forecast

Based on last week’s close at 25004, the direction of the September E-mini Dow Jones Industrial Average this week will be determined by trader reaction to the 50% level at 24925.

A sustained move over 24925 will indicate the presence of buyers. This could drive the Dow into a downtrending Gann angle at 25072. Taking out the angle will indicate the buying is getting stronger. This could lead to a test of the Fibonacci level at 25337, followed by the minor top at 25418.

The trigger point for a potential acceleration to the upside is 25418. Taking out this minor top could fuel a spike into another minor top at 25868, followed closely by a downtrending Gann angle at 25872.

A sustained move under 24925 will signal the presence of sellers. This could lead to a quick test of the uptrending Gann angle at 24825.

Taking out 24825 could trigger an acceleration to the downside with the main 50% level at 24341 the next likely downside target. The daily chart opens up to the downside under 24341 with potential targets at 23978 and 23790.

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