E-mini Dow Jones Industrial Average (YM) Futures Technical Analysis – Reaction to 34751 Pivot Sets the ToneThe direction of the September E-mini Dow Jones Industrial Average on Monday is likely to be determined by trader reaction to 34751.
September E-mini Dow Jones Industrial Average futures are trading lower during the pre-market session but the market remained just below its record high at 34883. The price action suggests investors are being a little cautious ahead of the start of earnings season on Tuesday, and the release of key U.S. economic reports on consumer inflation and retail sales.
At 04:30 GMT, September E-mini Dow Jones Industrial Average futures are trading 34697, down 54 or -0.16%.
Trading Derivatives carries a high level of risk to your capital and you should only trade with money you can afford to lose. Trading Derivatives may not be suitable for all investors, so please ensure that you fully understand the risks involved, and seek independent advice if necessary. A Product Disclosure Statement (PDS) can be obtained either from this website or on request from our offices and should be considered before entering into a transaction with us. Raw Spread accounts offer spreads from 0.0 pips with a commission charge of USD $3.50 per 100k traded. Standard account offer spreads from 1 pips with no additional commission charges. Spreads on CFD indices start at 0.4 points. The information on this site is not directed at residents in any country or jurisdiction where such distribution or use would be contrary to local law or regulation.
The blue chip Dow popped on Friday with the cash market hitting a record high as stocks tied to the economic recovery that fell the previous session logged gains. This included Goldman Sachs, which jumped more than 3%.
Daily Swing Chart Technical Analysis
The main trend is up according to the daily swing chart. The uptrend was reaffirmed earlier in the session when buyers inched through Friday’s high at 34784. A trade through 34004 will change the main trend to down.
The minor range is 34004 to 34796. Its 50% level at 34400 is the nearest support.
The short-term range is 32902 to 34796. If the main trend changes to down then its retracement zone at 33849 to 33626 will become the primary downside target area.
Daily Swing Chart Technical Forecast
The early price action suggests the direction of the September E-mini Dow Jones Industrial Average on Monday is likely to be determined by trader reaction to 34751.
A sustained move over 34751 will indicate the presence of buyers. If this move creates enough upside momentum then look for the rally to possibly extend into the record high at 34883. This is a potential trigger point for an acceleration to the upside since there is no true resistance.
A sustained move under 34751 will signal the presence of sellers. If this move generates enough downside momentum then look for the move to possibly extend into the minor pivot at 34400. Since the main trend is up, buyers are likely to come in on the first test of this level.
A close under 34751 will form a potentially bearish closing price reversal top. It won’t change the main trend to down, but it could trigger the start of a minimum 2 to 3 day correction. The nearest potential downside targets are the main bottom at 34004 and the short-term 50% level at 33849.