E-mini Dow Jones Industrial Average (YM) Futures Technical Analysis – April 25, 2019 Forecast

The blue chip Dow Jones Industrial Average is trading higher early Thursday after posting a potentially bearish closing price reversal top the previous session. The Dow was pressured by component Caterpillar, which fell 3% despite the company posting better-than-expected quarterly earnings. The catalyst behind the weakness was the CFO’s warning of a possible slowdown in its China business.

At 05:45 GMT, June E-mini Dow Jones Industrial Average futures are trading 26569, up 28 or +0.11%.

Daily Technical Analysis

The main trend is up according to the daily swing chart. However, yesterday’s closing price reversal top indicates that momentum may be getting ready to shift to the downside.

A trade through 26518 will confirm the closing price reversal top. This will also shift momentum but not necessarily lead to a change in trend. It could trigger the start of a 2 to 3 day correction.

A move through 26694 will negate the closing price reversal top and signal a resumption of the uptrend.

The minor trend is also up. A trade through 26311 will change the minor trend to down. This will also indicate a shift in momentum to the downside.

The minor range is 26311 to 26694. Its 50% level or pivot at 26503 is support and another potential trigger point for an acceleration to the downside.

The main range is 26060 to 26694. Its 50% level or pivot at 26377 is another downside target.

Daily Technical Forecast

Based on the early trade, the direction of the June E-mini Dow Jones Industrial Average on Thursday is likely to be determined by trader reaction to the pivot at 26503.

Bullish Scenario

A sustained move over 26503 will indicate the presence of buyers. The first upside target is the uptrending Gann angle at 26636. Overcoming this angle will put the Dow in a strong position. This could trigger a rally into 26694, followed by another uptrending Gann angle at 26789. Overtaking this angle will put the Dow in an extremely bullish position.

Bearish Scenario

A sustained move under 26503 will signal the presence of sellers. This could trigger an acceleration to the downside with the next targets the main 50% level at 26377, a short-term uptrending Gann angle at 26348, a minor bottom at 26311 and a major uptrending Gann angle at 26306.