E-mini Dow Jones Industrial Average (YM) Futures Technical Analysis – June 27, 2019 Forecast

September E-mini Dow Jones Industrial Average futures are trading lower on Thursday, shortly before the cash market opening. Weighing on prices are worries over U.S.-China trade relations ahead of a meeting between U.S. President Trump and Chinese President Xi Jinping at the G-20 summit in Osaka, Japan on Saturday.

Weakness in shares of Dow component Boeing is also weighing on the blue chip average. Boeing stock is down 3% in premarket trading after the FAA said it had found a new issue with the 737 Max aircraft. An international aviation body said U.S. regulators need to work on returning the Boeing 737 Max in step with international regulators, as “aviation cannot function efficiently without this coordinated effort.”

In other news, U.S. Final GDP came in as expected at 3.1%, however, Weekly Unemployment Claims rose to 227K, higher than the 220K forecast.

At 13:27 GMT, September E-mini Dow Jones Industrial Average futures are trading 26566, up 16 or +0.07%.

Daily Technical Analysis

The main trend is up according to the daily swing chart. However, momentum has been trending lower since the formation of the closing price reversal top at June 21.

A trade through 26922 will negate the closing price reversal top and signal a resumption of the uptrend. This will put the Dow in a position to challenge the October 3, 2018 main top at 27031.

The main trend will change to down on a trade through 25897.

The short-term range is 25897 to 26922. Its retracement zone at 26410 to 26289 is the first downside target. Since the trend is up, look for buyers on the first test of this area. They are going to try to form a secondary higher bottom.

The main range is 24626 to 26922. If the trend changes to down then look for the selling to extend into its retracement zone at 25774 to 25503.

Daily Technical Forecast

Based on the early price action, the direction of the September E-mini Dow Jones Industrial Average on Thursday is likely to be determined by trader reaction to the uptrending Gann angle at 26537.

Bullish Scenario

A sustained move over 26537 will indicate the presence of buyers. The first upside target is the downtrending Gann angle at 26858. Overtaking this angle will indicate the buying is getting stronger with potential target angles coming in at 26794 and 26858. The latter is the last potential resistance angle before the 26922 main top.

Bearish Scenario

A sustained move under 26537 will signal the presence of sellers. The next target is the short-term retracement zone at 26410 to 26289, followed by an uptrending Gann angle at 26217. Look for buyers to come in on a test of this area. They will be trying to form a secondary higher bottom.