E-mini Dow Jones Industrial Average (YM) Futures Analysis – Weekly Chart Indicates Weakness to 25584 if 26128 Fails as Support

September E-mini Dow Jones Industrial Average futures are showing limited reaction to the news of an additional 10% tariff on $200 billion of Chinese goods. The tariff could climb to as much as 25% by the end of the year if the United States and China fail to reach a new trade agreement.

Weekly Technical Analysis

The main trend is up according to the weekly swing chart. A trade through 26237 will signal a resumption of the uptrend.

The minor trend is also up. A trade through 25764 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 the first downside target and nearest support zone.

The main range is 22009 to 26672. Its retracement zone at 24341 to 23790 is longer-term support and the major downside target.

Weekly Technical Forecast

Based on last week’s close at 26158, 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 26128.

A sustained move over 26128 will indicate the presence of buyers. Taking out last week’s high at 26237 will indicate the buying is getting stronger. This could trigger a further rally into the next downtrending Gann angle at 26400. This is the last potential resistance angle before the 26672 main top.

A sustained move under 26128 will signal the presence of sellers. The daily chart is wide open under this angle with the next targets a minor bottom at 25764 and a downtrending Gann angle at 25584.

Crossing to the weak side of the angle at 25584 will indicate the selling is getting stronger. This could trigger a further break into the short-term retracement zone at 25337 to 24925. Since the main trend is up, buyers could show up on the initial test of this zone.