E-mini Dow Jones Industrial Average (YM) Futures Technical Analysis – September 3, 2019 Forecast

September E-mini Dow Jones Industrial Average futures are trading lower on Tuesday. Monday was a cash market holiday in the United States so we’re not looking at the electronic trading in the futures market. The Dow is following the weakness in Asia. The price action reflects some uncertainty over U.S.-China trade relations. Although both parties will resume trade talks on Thursday, the two economic powerhouses still remain no closer to ending the trade dispute.

At 05:58 GMT, September E-mini Dow Jones Industrial Average futures are trading 26242, down 164 or 0.62%.

Daily Technical Analysis

The main trend is up according to the daily swing chart. The trend turned up on Friday when buyers took out a pair of tops at 26375 and 26408. The main trend will change to down on a move through 25266.

The main range is 24626 to 27397. Its retracement zone at 26012 to 25685 is support. This zone is controlling the longer-term direction of the Dow.

The short-term range is 27397 to 25032. Its retracement zone at 26215 to 26494 could be developing into resistance. The Dow is currently straddling the lower or 50% level of this zone at 26494.

Daily Technical Forecast

Based on the early price action and the current price at 26242, the direction of the September E-mini Dow Jones Industrial Average the rest of the session on Tuesday is likely to be determined by trader reaction to the downtrending Gann angle at 26277 and the 50% level at 26215.

Bullish Scenario

A sustained move over 26277 will indicate the presence of buyers. If this generates enough upside momentum, the Dow could rally into the short-term Fibonacci level at 26494. This is followed closely by the minor top at 26559.

Bearish Scenario

A sustained move under 26215 will signal the presence of sellers. The first downside target is the main 50% level at 26012. Since the main trend is up, buyers could come in on the first test of this level. If it fails then look for the selling to possibly extend into the steep uptrending Gann angle at 25906. This angle has to hold or we could see a steep break into the main Fibonacci level at 25685.