E-mini Dow Jones Industrial Average (YM) Futures Technical Analysis – August 30, 2019 Forecast

September E-mini Dow Jones Industrial Average futures are set up for a higher opening following yesterday’s solid gains. It looks like it’s going to be another “risk-on” session after Thursday potentially bullish developments over improving U.S.-China trade relations. Investors seem to be shrugging off concerns over a U.S. recession, hoping that a widely expected 25-basis point rate cut by the Fed in September will continue to drive the current 10-year economic expansion.

At 13:18 GMT, September E-mini Dow Jones Industrial Average futures are trading 26518, up 140 or +0.53%.

Daily Technical Analysis

The main trend is up according to the daily swing chart. The main trend turned up earlier in the session when buyers took out 26375. It was reaffirmed on a trade through the main top at 26408. The main trend will change to down on a move through 25266.

The main range is 24626 to 27397. Its retracement zone at 26012 to 25685 is controlling the near-term direction of the Dow. This zone is also major support.

The short-term range is 27397 to 25032. Its retracement zone comes in at 26215 to 26494. Crossing to the strong side of this zone will put the Dow in a bullish position. This zone could become support.

Daily Technical Forecast

Based on the early price action and the current price at 26518, the direction of the September E-mini Dow Jones Industrial Average the rest of the session on Friday is likely to be determined by trader reaction to the short-term Fibonacci level at 26494.

Bullish Scenario

A sustained move over 26494 will indicate the presence of buyers. If this move creates enough upside momentum then look for the buying to possibly extend into the next downtrending Gann angle at 26853.

Bearish Scenario

A sustained move under 26494 will signal the presence of sellers. The first downside target is a pair of Gann angles at 26309 and 26290. Since the main trend is up, buyers could come in on a test of this area.

If 26290 fails then look for the selling to possibly extend into the short-term 50% level at 26215. This is a potential trigger point for a potential acceleration into the major 50% level at 26012.