E-mini Dow Jones Industrial Average

E-mini Dow Jones Industrial Average (YM) Futures Technical Analysis – July 12, 2019 Forecast

September E-mini Dow Jones Industrial Average futures are called higher shortly before the cash market opening. This week’s rally continues to be driven by the dovish testimony from Federal Reserve chief Jerome Powell on Wednesday. Investors are buying because they expect a 25-basis point rate cut at the end of the month with some still calling for a half-a-point rate cut at the Fed’s July 30-31 monetary policy meeting.

At 13:25 GMT, September E-mini Dow Jones Industrial Average futures are trading 27156, up 79 or +0.30%.

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. Earlier in the session, the Dow hit an all-time high. A trade through 26657 will change the main trend to down. This is highly unlikely, but we could see a closing price reversal top if the buying dries up, or aggressive counter-trend sellers show up.

Daily Technical Forecast

Based on the earlier price action and the current price at 27156, the direction of the September E-mini Dow Jones Industrial Average futures contract the rest of the session on Friday is likely to be determined by trader reaction to the uptrending Gann angle at 27177.

Bullish Scenario

A sustained move over 27177 will indicate the presence of buyers. This will put the Dow in an extremely strong position.

Bearish Scenario

A sustained move under 27177 will signal the presence of sellers. The first two downside targets are a pair of uptrending Gann angles at 27085 and 27041. Since the trend is up, look for a technical bounce on a test of these angles.

If 27041 fails then watch for an acceleration to the downside. This could lead to a steep break into the next uptrending Gann angle at 26849.

Overview

Watch the price action and read the order flow on a test of yesterday’s close at 27077. Taking out this angle will put the market in a position to post a potentially bearish closing price reversal 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.