E-mini Dow Jones Industrial Average (YM) Futures Technical Analysis – August 6, 2019 Forecast

Based on the early price action and the current price at 25757, the direction of the September E-mini Dow Jones Industrial Average the rest of the session is likely to be determined by trader reaction to the main Fibonacci level at 25685.
James Hyerczyk
E-mini Dow Jones Industrial Average

September E-mini Dow Jones Industrial Average futures are trading higher on Tuesday, but most of the gains took place during the pre-market session with no follow-through to the upside following the cash market opening. Stocks rebounded following a steep overnight sell-off after China’s central bank indicated it wanted its currency to trade at a higher level than expected against the U.S. Dollar.

At 14:50 GMT, September E-mini Dow Jones Industrial Average futures are trading 25757, up 207 or +0.81%.

Daily September E-mini Dow Jones Industrial Average

Daily Technical Analysis

The main trend is down according to the daily swing chart. However, the early price action has shifted momentum to the upside, while putting the Dow in a position to post a potentially bullish closing price reversal bottom. Although the chart pattern will not indicate a change in trend, it could lead to a two-to-three day counter-trend rally.

A trade through today’s intraday low at 25032 will signal a resumption of the downtrend with the next target the June 3 bottom at 24626.

The main range is 24626 to 27397. Its retracement zone at 26012 to 25685 is controlling the near-term direction of the Dow. It is currently being tested.

The new short-term range is 27397 to 25032. If buyers can take out 26012 then look for the rally to extend into its retracement zone at 26215 to 26494. Since the main trend is down, sellers could come in on a test of this area.

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Daily Technical Forecast

Based on the early price action and the current price at 25757, the direction of the September E-mini Dow Jones Industrial Average the rest of the session is likely to be determined by trader reaction to the main Fibonacci level at 25685.

Bullish Scenario

A sustained move over 25685 will indicate the presence of buyers. If this move is able to create enough upside momentum then look for the rally to possibly extend into the 50% level at 26012. Overcoming the uptrending Gann angle at 26066 will indicate the buying is getting stronger. This could trigger a rally into the short-term retracement zone at 26215 to 26494. Inside this zone is a downtrending Gann angle at 26373. This is also a valid upside target.

Bearish Scenario

A sustained move under 25685 will signal the presence of sellers. Breaking this level could trigger a steep break into a pair of Gann angles at 25349 and 25346. If 24346 fails as support then look for the selling to possibly extend into the low at 25032 and the uptrending Gann angle at 24986. The next uptrending Gann angle is at 24806. This is the last potential support angle before the 24626 main bottom.

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