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E-mini Dow Jones Industrial Average (YM) Futures Analysis – Strengthens Over 25287, Weakens Under 25198

By:
James Hyerczyk
Published: Aug 15, 2018, 06:31 UTC

Based on the early price action, the direction of the September E-mini Dow Jones Industrial Average is likely to be determined by trader reaction to the 50% level at 25287.

E-mini Dow Jones Industrial Average

Aversion to risk is helping to put pressure on the Dow during the early futures session. After posting a triple-digit gain on Tuesday, sellers came in early Wednesday to put a cap on the rally as investors continued to express concerns over the financial turmoil in Turkey.

At 0617 GMT, September E-mini Dow Jones Industrial Average futures are trading 25264, down 30 or -0.12%.

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

Daily Swing Chart Technical Analysis

The main trend is up according to the daily swing chart. A trade through 25087 will change the main trend to down. The uptrend resumes on a trade through 25661.

The price action is also being dictated by a series of retracement levels.

The main range is 24912 to 25661. Its retracement zone at 25287 to 25198 is currently being tested.

The intermediate range is 25087 to 25661. Its 50% level at 25374 is the first resistance.

The short-term range is 25661 to 25141. Its retracement zone at 25401 to 25462 is the primary upside target. This zone is important because aggressive counter-trend sellers may step in on a test of this area in an effort to form a secondary lower top. Buyers are going to try to use this zone as a launching pad for a breakout to the upside. In doing so, they’ll turn 25141 into a main bottom.

Daily Swing Chart Technical Forecast

Based on the early price action, the direction of the September E-mini Dow Jones Industrial Average is likely to be determined by trader reaction to the 50% level at 25287.

A sustained move under 25287 will indicate the presence of sellers. This could lead to a test of the Fibonacci level at 25198. This is followed by the low at 25141 and the main bottom at 25087.

Taking out 25087 will not only change the trend to down, but it could also trigger an acceleration to the downside with the next targets a major 50% level at 24925 and another main bottom at 24912.

A sustained move over 25287 will signal the presence of buyers. This could trigger an acceleration to the upside with a series of levels at 24374, 25401 and 25462 potential upside targets.

Basically, look for strength over 25287 and weakness under 25198.

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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