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E-mini Dow Jones Industrial Average (YM) Futures Technical Analysis – Straddling Price Cluster at 26601 to 26602

By:
James Hyerczyk
Published: Jun 28, 2019, 18:46 UTC

Based on the early price action, the direction of the September E-mini Dow Jones Industrial Average into the close on Friday is likely to be determined by trader reaction to a pair of Gann angle at 26601 to 26602. This area is pretty close to an exact price cluster. Volume and volatility are below average so be careful buying strength or selling weakness. Basically look for an intraday upside bias on a sustained move over 26602 and for a downside bias under 26601.  

E-mini Dow Jones Industrial Average

September E-mini Dow Jones Industrial Average futures are treading weather shortly before the close on Friday, but buyers have had the upper hand all session. Nonetheless, gains are also being limited by concerns over the outcome of this weekend’s meeting between U.S. President Donald Trump and Chinese President Xi Jinping at the G-20 summit in Osaka, Japan.

At 18:25 GMT, September E-mini Dow Jones Industrial Average futures are at 25677, up 31 or +0.12%.

Banks stocks are providing the most support with J.P. Morgan Chase jumping 2.8% and Citigroup, Bank of America, Goldman Sachs and Wells Fargo moving higher by 2% or more.

E-mini Dow Jones Industrial Average
Daily Sept E-mini Dow Jones Industrial Average

Daily Technical Analysis

The main trend is up according to the daily swing chart. However, momentum has been trending lower since the closing price reversal top was formed at 26922 on June 21.

Taking out 26445 will indicate the selling is getting stronger, but the main trend changes to down on a trade through 25897.

A move through 26922 will negate the closing price reversal top. This will also signal a resumption of the uptrend.

The short-term range is 26922 to 26445. Its 50% level or pivot at 26684 is controlling the direction of the market today.

The intermediate-term range is 25897 to 26922. Its retracement zone at 26410 to 26289 is the first downside target. Since the main trend is up, buyers are likely to defend this zone.

Daily Technical Forecast

Based on the early price action, the direction of the September E-mini Dow Jones Industrial Average into the close on Friday is likely to be determined by trader reaction to a pair of Gann angle at 26601 to 26602. This area is pretty close to an exact price cluster.

Bullish Scenario

A sustained move over 26602 will indicate the presence of buyers. If this move creates enough upside momentum then look for a drive into the short-term pivot at 26684. Overtaking this will indicate the buying is getting stronger with the next target angle coming in at 26762.

Bearish Scenario

A sustained move under 26602 will signal the presence of sellers. If this move generates enough downside momentum then look for the selling to possibly extend into the intermediate 50% level at 26410.

Overview

Volume and volatility are below average so be careful buying strength or selling weakness. Basically look for an intraday upside bias on a sustained move over 26602 and for a downside bias under 26601.

About the Author

James is a Florida-based technical analyst, market researcher, educator and trader with 35+ years of experience. He is an expert in the area of patterns, price and time analysis as it applies to futures, Forex, and stocks.

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