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E-mini Dow Jones Industrial Average (YM) Futures Analysis – Sustained Move Over 24993 Will Put Dow in Extremely Bullish Position

By:
James Hyerczyk
Updated: Jan 3, 2018, 05:08 GMT+00:00

Based on Friday’s close at 24735 and last week’s price action, the direction of the March E-mini Dow Jones Industrial Average futures contract this week will be determined by trader reaction to the steep uptrending Gann angle at 24993.

E-mini Dow Jones Industrial Average

March E-mini Dow Jones Industrial Average futures settled lower last week, however, the move took place under thin trading conditions. Additionally, the weakness was likely fueled by profit-taking and position-squaring ahead of the long holiday weekend.

E-mini Dow Jones Industrial Average
Weekly March E-mini Dow Jones Industrial Average

Weekly Technical Analysis

The main trend is up according to the weekly swing chart. A trade through 24896 will signal a resumption of the uptrend. The main trend will change to down on a move through 23201.

The short-term range is 23201 to 24896. Its retracement zone at 24049 to 23848 is the primary downside target and first value zone. Since the main trend is up, buyers may come in on a test of this zone.

Weekly Technical Forecast

Based on Friday’s close at 24735 and last week’s price action, the direction of the March E-mini Dow Jones Industrial Average futures contract this week will be determined by trader reaction to the steep uptrending Gann angle at 24993.

Given the position of the Gann angle that is guiding the market higher, buyers are going to have to come in strong this week and take out 24896. The move has to create enough upside momentum to overcome 24993 in order to put the Dow in a bullish position.

A sustained move under 24993 will indicate the buying is week and sellers are coming in to slow down the rally. A sustained move under 24896 will indicate the selling is getting stronger.

Taking out last week’s low at 24667 will make 24896 a new main top on the weekly chart. This move could trigger an eventual acceleration to the downside with the primary downside target a support cluster at 24097 to 24049.

About the Author

James Hyerczyk is a U.S. based seasoned technical analyst and educator with over 40 years of experience in market analysis and trading, specializing in chart patterns and price movement. He is the author of two books on technical analysis and has a background in both futures and stock markets.

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