E-mini Dow Jones Industrial Average

E-mini Dow Jones Industrial Average (YM) Futures Analysis – August 1, 2018 Forecast

September E-mini Dow Jones Industrial Average futures are called lower based on the early trade. Dow traders are reacting more to the threat of additional tariffs on China more than the other indexes. A strong rise in shares of Apple could be underpinning the Dow. Position-squaring ahead of the Fed’s interest rate decision and monetary policy statement at 1800 GMT is also likely driving the early price action.

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

Daily Technical Analysis

The main trend is up according to the daily swing chart. A move through 25572 will signal a resumption of the uptrend. The trend will change to down on a trade through 24912. Taking out 25264 will indicate the selling pressure is getting stronger.

The short-term range is 25572 to 25264. Its 50% level or pivot at 25418 is controlling the direction of the Dow today.

The main range is 24912 to 25572. If the selling pressure continues then look for a test of its retracement zone at 25242 to 25164. Since the main trend is up, buyers are likely to show up on a test of this zone.

Daily Technical Forecast

Based on the early trade, the direction of the Dow is likely to be determined by trader reaction to the downtrending Gann angle at 25424.

A sustained move under 25424 will indicate the presence of sellers. The daily chart indicates there is room to the downside with targets at 25264 then 24242. Look for buyers on the first test of this level.

If 24242 fails to hold then look for the selling to extend into a potential support cluster at 25168 to 25164. This is the last major support angle. If it fails prices could plunge.

A sustained move over 25424 will signal the presence of buyers. However, this is likely to lead to a labored rally with resistance layered at 25418, 25424, 25450 and 25476.

The market will start to open up to the upside over 25476 with 25524 the next target. This is the last potential resistance angle before the 25572 main top.

Published by

James Hyerczyk

James A. Hyerczyk has worked as a fundamental and technical financial market analyst since 1982. His technical work features the pattern, price and time analysis techniques of W.D. Gann.