E-mini Dow Jones Industrial Average (YM) Futures Analysis – Strong Weekly Upside Momentum Could Drive Dow Through 25868

September E-mini Dow Jones Industrial Average futures started the week on a high note after ending last week in similar fashion. The price action suggests investors are increasing bets that geopolitical events and trade disputes will have a minimal effect on the U.S. economy and corporate earnings.

Weekly Technical Analysis

The main trend is up according to the weekly swing chart. After the late January/early February steep sell-off, the Dow has grinded higher, posting a series of higher-highs and higher-lows in the process. Now it’s in a position to take out its March high at 25868, a move that could launch a rally into its all-time high at 26672.

The minor trend is also up. A trade through 24955 will change the minor trend to down.

The weekly short-term range is 26672 to 23178. Its retracement zone at 25337 to 24925 is support. Holding above this zone is also helping to give the Dow an upside bias.

The weekly main range is 22009 to 26672. Its retracement zone at 24341 to 23790 is major support.

Weekly Technical Forecast

Based on last week’s close and Monday’s price action, the direction of the September E-mini Dow Jones Industrial Average futures contract this week will be determined by trader reaction to the downtrending Gann angle at 25712.

A sustained move over 25712 will indicate the presence of buyers. This could create the upside momentum needed to challenge the March high at 25868. This is another trigger point for an acceleration to the upside with the next Gann angle target coming in at 26192. This is the last potential resistance angle before the 26672 all-time high.

A sustained move under 25712 will signal the presence of sellers, or that the buying is getting weaker. If this move generates enough downside momentum, we could see a pullback into the short-term Fibonacci level at 25337. This is followed closely by a long-term uptrending Gann angle at 25145.

Momentum will shift to the downside if 25145 fails as support, and the Dow could break sharply if the selling is strong enough to take out the 50% level at 24925 and the minor bottom at 24955.