E-mini Dow Jones Industrial Average (YM) Futures Technical Analysis – July 29, 2019 Forecast

September E-mini Dow Jones Industrial Average futures are called slightly higher on the opening after a lackluster pre-market session. Traders appear to be positioning themselves ahead Wednesday’s Federal Reserve announcements and the start of trade talks between the United States and China.

Investors expect the Fed to cut its benchmark interest rate 25-basis points. This has already been priced into the market. Investors are more interested in whether the Fed signals additional rate cuts in September or December, or both months. A dovish Fed will be bullish for stocks.

At 13:33 GMT, September E-mini Dow Jones Industrial Average futures are trading 27182, up 33 or +0.13%.

Daily Technical Analysis

The main trend is down according to the daily swing chart. The trend turned down on July 25 when sellers took out the previous main bottom at 27057. There was very little follow-through to the downside, however, suggesting the dip into 27040 may have been fueled by sell stops.

The main trend will change to up on a trade through 27358. This is followed closely by another main top at 27397.

The short-term range is 26657 to 27397. Its retracement zone at 27027 to 26940 is potential support.

Daily Technical Forecast

Based on the early price action, the direction of the September E-mini Dow Jones Industrial Average on Monday is likely to be determined by trader reaction to the uptrending Gann angles at 27117 to 27105.

Bullish Scenario

A sustained move over 27117 will indicate the presence of buyers. If this move creates enough upside momentum then look for the rally to possibly extend into the downtrending Gann angle at 27237. Overtaking this angle could drive the Dow into the next downtrending Gann angle at 27317. This is the last potential resistance angle before the 27358 and 27397 main tops.

Bearish Scenario

A sustained move under 27105 will signal the presence of sellers. This could trigger a break into 27040 and the 50% level at 27027. If this level fails then look for the selling to possibly extend into the Fibonacci level at 26940.