E-mini Dow Jones Industrial Average (YM) Futures Technical Analysis – Rally Could Extend into 28183 to 28418

September E-mini Dow Jones Industrial Average futures are ripping higher on Wednesday, led by a recovery in the technology sector. The rally came about as investors shrugged off a setback with a coronavirus vaccine and disappointing earnings news. Dow component, Apple, which lost more than 6% in the previous session, was up by 4.4% shortly after the cash market opening.

At 14:44 GMT, September E-mini Dow Jones Industrial Average futures are trading 27939, up 389 or +1.37%.

Daily Swing Chart Technical Analysis

The main trend is down according to the daily swing chart. A trade through 27185 will signal a resumption of the downtrend. The main trend will change to up on a trade through the last main top at 29180.

The main range is 25881 to 29180. Its retracement zone at 27531 to 27141 stopped the selling earlier in the session at 27185.

The new minor range is 29180 to 27185. Its retracement zone at 28183 to 28418 is the primary upside target.

Daily Swing Chart Technical Forecast

The test of the major retracement zone at 27531 to 27141 bought in new buyers since this zone represents value. It was also a good thing because the daily chart indicates there is plenty of room to the downside under 27141 with 25910 – 25881 the next major downside target area.

The combination of new buying and short-covering should be enough to create the upside momentum needed to challenge the retracement zone at 28183 to 24818.

The retracement zone at 28183 to 24818 is a very important area. Trader reaction to this zone will determine the next major move.

Aggressive traders are going to come in on a test of this zone. They are going to try to form a potentially bearish secondary lower top. If successful then we’re likely to see an eventual break through 27141 and the expected acceleration to the downside.

If the buying is strong enough to overtake 28418 and sustain the move then look for a possible acceleration to the upside with 29180 the next potential target.

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