E-mini Dow Jones Industrial Average (YM) Futures Technical Analysis – Trade Through 27397 Signals Resumption of Uptrend

Based on the early price action and the current price at 27310, the direction of the September E-mini Dow Jones Industrial Average on Wednesday is likely to be determined by trader reaction to the 50% level at 27227.
James Hyerczyk
E-mini Dow Jones Industrial Average

September E-mini Dow Jones Industrial Average futures are trading lower early Wednesday after posting a solid gain the previous session. The market is being underpinned by optimism that the renewed trade talks between the United States and China would lead to a deal that would end the prolonged trade dispute.

At 06:42 GMT, September E-mini Dow Jones Industrial Average futures are trading 27310, down 14 or -0.15%.

Traders said a batch of stronger-than-expected earnings also bolstered investor sentiment. These reports included Coca-Cola and United Technologies. Shares of Caterpillar and Deere hit their session highs after the announcement of the US-China trade talks.

Daily September E-mini Dow Jones Industrial Average

Daily Swing Chart Technical Analysis

The main trend is up according to the daily swing chart. A trade through 27397 will signal a resumption of the uptrend. The main trend will change to down on a move through 27057.

The short-term range is 27397 to 27057. Its 50% level or pivot at 27227 is controlling the early direction of the market.

The intermediate range is 26657 to 27397. Its 50% level at 27027 is support.

The next intermediate range is 25897 to 27397. If the trend changes to down then its retracement zone at 26647 to 26470 will become the next downside target zone.

Daily Swing Chart Technical Forecast

Based on the early price action and the current price at 27310, the direction of the September E-mini Dow Jones Industrial Average on Wednesday is likely to be determined by trader reaction to the 50% level at 27227.

Bullish Scenario

A sustained move over 27227 will indicate the presence of buyers. If this creates enough upside momentum then look for a potential test of the main top at 27397. This is a potential trigger point for an acceleration to the upside.

Bearish Scenario

A sustained move under 27227 will signal the presence of sellers. This could create the downside momentum needed to challenge the main bottom at 27057 and the intermediate 50% level at 27027.

The daily chart indicates there is plenty of room to the downside under 27027 so don’t be surprised by an acceleration to the downside with the next targets a main bottom at 26657 and a 50% level at 26647.

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