E-mini Dow Jones Industrial Average (YM) Futures Analysis – Sustained Move Over 26160 Targets 26416 then 26672 Contract High

September E-mini Dow Jones Industrial Average futures settled higher last week, driven by the new trade deal between the United States and Mexico, and a bullish outlook for the U.S. economy. At the end of the week, however, concerns were raised over the possibility of new tariffs against China.

Weekly Technical Analysis

The main trend is up according to the weekly swing chart. A trade through 26672 will reaffirm the uptrend. The Dow is in no position to change the main trend to down, but it is inside the window of time for a potentially bearish closing price reversal top chart pattern.

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

The short-term range is 26672 to 23178. Its retracement zone at 25337 to 24925 is support.

The main range is 22009 to 26672. Its retracement zone at 24341 to 23790 is the major support. Holding above this zone is also helping to give the Dow a strong weekly upside bias.

Weekly Technical Forecast

Based on last week’s close at 25988, the direction of the September E-mini Dow Jones Industrial Average futures contract is likely to be determined by trader reaction to a long-term downtrending Gann angle at 26160. This angle stopped the rally last week.

A sustained move under 26160 will indicate the presence of sellers. If this move creates enough downside momentum then look for a potential break into the next downtrending Gann angle at 25648. A failure at this angle could trigger a further break into the short-term Fibonacci level at 25337, followed by the long-term uptrending Gann angle at 25273.

Overtaking and sustaining a rally over 26160 will signal the presence of buyers. This could trigger an acceleration into the next downtrending Gann angle at 26416. This is the last potential resistance angle before the 26672 main top.

Taking out last week’s high at 26185 and closing below 25988 will form a potentially bearish closing price reversal top. If confirmed, this could fuel the start of a 2 to 3 week correction.