E-mini Dow Jones Industrial Average (YM) Futures Analysis – Upside Momentum Could Drive Market into 26176

September E-mini Dow Jones Industrial Average futures close higher last week while the cash S&P 500 Index and the NASDAQ Composite reached record highs.

Last week, the E-mini Dow futures contract settled at 25792, up 118 or +0.46%.

Weekly Technical Analysis

The main trend is up according to the weekly swing chart. A trade through 26672 will signal a resumption of the uptrend. A trade through 23178 will change the main trend to down. Due to the prolonged move up in terms of price and time, traders should watch for a closing price reversal top.

The minor trend is also up according to the weekly swing chart. The uptrend was reaffirmed when buyers took out the minor top at 25868 from the week-ending March 2. The minor trend will change to down on a trade through 24955.

The 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 market an upside bias.

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

Weekly Technical Forecast

Based on last week’s price action and the close at 25792, the direction of the September E-mini Dow Jones Industrial Average this week is likely to be determined by trader reaction to the downtrending Gann angle at 25680.

A sustained move over 25680 will indicate the presence of buyers. If this move creates enough upside momentum then look for the rally to extend into the next downtrending Gann angle at 26176. We could see a technical bounce on the first test of this angle, but overcoming this level could trigger an acceleration to the upside with the next target angle coming in at 26424. This is the last potential resistance angle before the 26672 main top.

A sustained move under 25680 will signal the presence of sellers. If this move draws enough sellers then look for the weakness to possibly extend into the Fibonacci level at 25337. This is followed by an uptrending Gann angle at 25209.