E-mini Dow Jones Industrial Average (YM) Futures Technical Analysis – First Upside Target 27069; Reverses Under 26894

Based on the early price action and the current price at 26938, the direction of the September E-mini Dow Jones Industrial Average futures contract on Wednesday is likely to be determined by trader reaction to yesterday’s close at 26894.
James Hyerczyk
E-mini Dow Jones Industrial Average

September E-mini Dow Jones Industrial Average futures are trading higher in the pre-market session. The focus for investors remains on U.S.-China trade relations as tensions appear to be softening amid reports of positive developments. Rising Treasury yields and the shedding of safe-haven assets continue to point toward improving investor sentiment.

At 08:46 GMT, September E-mini Dow Jones Industrial Average futures are trading 26938, up 44 or +0.16%.

Daily Technical Analysis

The main trend is up according to the daily swing chart. The uptrend is safe for now, but the Dow is still inside the window of time for a potentially bearish closing price reversal top.

The minor trend is also up. A trade through 26717 will change the minor trend to down. This will also shift momentum to the downside.

The short-term range is 27397 to 25032. Its retracement zone at 26494 to 26215 is support. The major support zone is 26012 to 25685.

Daily Technical Forecast

Based on the early price action and the current price at 26938, the direction of the September E-mini Dow Jones Industrial Average futures contract on Wednesday is likely to be determined by trader reaction to yesterday’s close at 26894.

Bullish Scenario

A sustained move over 26894 will indicate the presence of buyers. If this move creates enough upside momentum then look for the rally to possibly extend into the next downtrending Gann angle at 27069.

Taking out 27069 will indicate the buying is getting stronger. This could trigger a rally into the next downtrending Gann angle at 27233. This is the last potential resistance angle before the 27358 and 27397 main tops.

Bearish Scenario

A sustained move under 26894 will signal the presence of sellers. This will also put the Dow in a position to form a closing price reversal top.

The first downside target is a downtrending Gann angle at 26741. This is followed by the minor bottom at 26717 and the next a steep uptrending Gann angle at 26674.

If 26674 fails as support then look for the selling to possibly extend into the short-term Fibonacci level at 26494.

A close below 26894 will form a closing price reversal top. If confirmed, this could trigger a two to three day correction.

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