E-mini Dow Jones Industrial Average (YM) Futures Technical Analysis – Strong Over 35357, Weak Under 35304

September E-mini Dow Jones Industrial Average futures finished lower on Thursday after recovering from earlier weakness.

Sellers helped form three potentially bearish closing price reversal tops on Monday, Tuesday and Wednesday. The chart pattern was confirmed on Thursday but the below average volume probably prevented a steeper break.

On Thursday, September E-mini Dow Jones Industrial Average futures settled at 35424, up 134 or +0.38%.

In sector and stock related news, the Dow was likely boosted by a stronger performance in the energy sector, which rose 2.5%. Thursday’s performance was fueled by crude prices jumping on a sharp decline in U.S. inventories and a weaker dollar. Oil giant and Dow component Chevron settled at $51.78, up $1.49 or +2.96%.

Walgreens Boots Alliance led all Dow components with a 2.96% gain, followed by Chevron and Caterpillar Inc, which moved higher by 2.09%.

Daily Swing Chart Technical Analysis

The main trend is up according to the daily swing chart. However, Thursday’s confirmation of the prior session’s closing price reversal top shifted momentum to the downside.

A trade through 35494 will negate the closing price reversal top and signal a resumption of the uptrend. A move through 35114 will change the main trend to down.

The minor range is 35114 to 35494. The E-mini Dow is currently trading on the strong side of its pivot at 35304.

The short-term range is 34494 to 35494. If the main trend changes to down then look for the selling to continue into its retracement zone at 34994 to 34876.

Daily Swing Chart Technical Forecast

The direction of the September E-mini Dow Jones Industrial Average futures contract on Friday is likely to be determined by trader reaction to the pivot at 35304.

Bullish Scenario

A sustained move over 35304 will indicate the presence of buyers. If this creates enough upside momentum then look for the rally to possibly extend into 35494.

Taking out 35494 will indicate the buying is getting stronger. This could fuel a rally into the record high at 35547. A move through this level could trigger an acceleration to the upside.

There is no resistance over 35547, however, due to the prolonged move up in terms of price and time, investors should watch for the formation of a potentially bearish closing price reversal top.

Bearish Scenario

A sustained move under 35304 will signal the presence of sellers. This could trigger an acceleration to the downside with 35114 the next target.

Taking out 35114 will change the main trend to down. This could trigger a further break into the short-term retracement zone at 34994 to 34876.