E-mini Dow Jones Industrial Average (YM) Futures Technical Analysis – August 26, 2019 Forecast

September E-mini Dow Jones Industrial Average futures are trading higher shortly before the cash market opening. The market is rebounding from early session weakness after a positive comment from President Trump eased tensions over U.S.-China trade relations. Trump said China is willing to resume trade talk negotiations. This was enough to trigger an impressive intraday rally that erased earlier losses.

At 10:50 GMT, September E-mini Dow Jones Industrial Average futures are trading 25835, up 169 or +0.66%.

Traders have to be careful reading into Trump’s comments because he knows he can move the market higher by putting a positive spin on U.S.-China trade relations. The rally could start to fade if China doesn’t confirm his remarks. On the other hand, the Dow could spike higher if China validates that trade talks are back on.

Daily Swing Chart Technical Analysis

The main trend is down according to the daily swing chart. Today’s low at 25266 stopped short of the last main bottom at 25226. Taking out this level will reaffirm the downtrend with the next target the main bottom at 25032. A trade through 26375 will change the main trend to up.

The main range is 24626 to 27397. Its retracement zone at 26012 to 25685 is still controlling the longer-term direction of the Dow. It’s currently trading inside this zone.

The short-term range is 27397 to 25032. Its retracement zone at 26215 to 26494 is resistance. This zone stopped the rally last week.

Daily Swing Chart Technical Forecast

Based on the early price action and the current price at 25835, the direction of the September E-mini Dow Jones Industrial Average is likely to be determined by trader reaction to the 50% level at 26012 and the 61.8% level at 25685.

Bullish Scenario

A sustained move over 26012 will indicate the presence of buyers. If this move creates enough upside momentum then look for the rally to possibly extend into the short-term 50% level at 26215, the main tops at 26375 and 26408 and the short-term Fibonacci level at 26494. This price is the trigger point for an acceleration to the upside.

Bearish Scenario

A sustained move under 25685 will signal the return of sellers. If this move generates enough downside momentum then look for the selling to possibly extend into today’s low at 25266 and a pair of main bottoms at 25226 and 25032.