E-mini Dow Jones Industrial Average (YM) Futures Technical Analysis – Trader Reaction 26245 Will Determine Direction into Close

Based on the early price action and the current price at 26291, the direction of the September E-mini Dow Jones Industrial Average into the close is likely to be determined by trader reaction to the downtrending Gann angle at 26245.
James Hyerczyk
Dow Jones Industrial Average

September E-mini Dow Jones Industrial Average futures are trading sharply higher at the mid-session on Thursday. The rally is being fueled by firmer global bond yields and stronger-than-expected Chinese trade data. The price action suggests that money managers may have fully-priced in the negative headlines from earlier in the week and are now buying up undervalued or severely oversold stocks.

At 17:15 GMT, September E-mini Dow Jones Industrial Average futures are trading 26291, up 351 or +1.36%.

The strong three day rally has nearly erased all of this week’s earlier losses, putting the Dow in a position to challenge last week’s close at 26449.

Daily September E-mini Dow Jones Industrial Average

Daily Technical Analysis

The main trend is down according to the daily swing chart. However, momentum is trending higher following the closing price reversal bottom at 25032 on August 6 and it subsequent confirmation.

The main trend will change to up on a trade through 27397, however, buyers will have to take out a short-term retracement zone before we can get there.

The short-term range is 27397 to 25032. Its retracement zone at 26215 to 26494 is the primary upside target. This zone is resistance. It’s also currently being tested.

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

Daily Technical Forecast

Based on the early price action and the current price at 26291, the direction of the September E-mini Dow Jones Industrial Average into the close is likely to be determined by trader reaction to the downtrending Gann angle at 26245.

Bullish Scenario

A sustained move over 26245 will indicate the buying is getting stronger. If this creates enough upside momentum then look for the rally to possibly extend into the short-term Fibonacci level at 26494. Sellers could come in on the first test of this level. Overcoming it, however, could trigger an acceleration to the upside with the next target angle coming in at 26821.

Bearish Scenario

A sustained move under 26245 will signal the presence of sellers. The next move could be labored with potential support levels at 26215, 26130 and 26012.

The trigger point for an acceleration to the downside is 26012. Taking out this level could trigger a steep drop into the main Fibonacci level at 25685.

Don't miss a thing!
Discover what's moving the markets. Sign up for a daily update delivered to your inbox

Latest Articles

See All

Expand Your Knowledge

See All
The content provided on the website includes general news and publications, our personal analysis and opinions, and contents provided by third parties, which are intended for educational and research purposes only. It does not constitute, and should not be read as, any recommendation or advice to take any action whatsoever, including to make any investment or buy any product. When making any financial decision, you should perform your own due diligence checks, apply your own discretion and consult your competent advisors. The content of the website is not personally directed to you, and we does not take into account your financial situation or needs.The information contained in this website is not necessarily provided in real-time nor is it necessarily accurate. Prices provided herein may be provided by market makers and not by exchanges.Any trading or other financial decision you make shall be at your full responsibility, and you must not rely on any information provided through the website. FX Empire does not provide any warranty regarding any of the information contained in the website, and shall bear no responsibility for any trading losses you might incur as a result of using any information contained in the website.The website may include advertisements and other promotional contents, and FX Empire may receive compensation from third parties in connection with the content. FX Empire does not endorse any third party or recommends using any third party's services, and does not assume responsibility for your use of any such third party's website or services.FX Empire and its employees, officers, subsidiaries and associates, are not liable nor shall they be held liable for any loss or damage resulting from your use of the website or reliance on the information provided on this website.
This website includes information about cryptocurrencies, contracts for difference (CFDs) and other financial instruments, and about brokers, exchanges and other entities trading in such instruments. Both cryptocurrencies and CFDs are complex instruments and come with a high risk of losing money. You should carefully consider whether you understand how these instruments work and whether you can afford to take the high risk of losing your money.FX Empire encourages you to perform your own research before making any investment decision, and to avoid investing in any financial instrument which you do not fully understand how it works and what are the risks involved.