E-mini Dow Jones Industrial Average

E-mini Dow Jones Industrial Average (YM) Futures Analysis – August 22, 2018 Forecast

September E-mini Dow Jones Industrial Average futures are trading slightly lower shortly before the cash market opening. The market is trying to recover from an early session setback fueled by fresh political problems for President Trump. Stronger-than-expected earnings reports are helping to underpin the market. However, a light trade ahead of this afternoon’s release of the latest Fed minutes may be limiting gains.

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 trade through 25885 will signal a resumption of the uptrend. The main trend changes to down on a move through 24955.

The minor trend is also up. However, the early session sell-off helped make 25885 a new minor top.

The minor range is 25885 to 25677. Its 50% level or pivot at 25781 is controlling the early direction of the market.

The main range is 24955 to 25885. If the selling pressure continues then look for a possible break into tis retracement zone at 25420 to 25310. Since the main trend is up, buyers are likely to come in on a test of this area.

Daily Technical Forecast

Based on the early price action, the direction of the September E-mini Dow Jones Industrial Average the rest of the session is likely to be determined by trader reaction to the pivot at 25781.

A sustained move over 25781 will indicate the presence of buyers. This could trigger a surge into 25885. Taking out this level will signal a resumption of the uptrend. It will also turn 25677 into a new minor bottom.

A sustained move under 24781 will signal the presence of sellers. If this move creates enough downside momentum then look for a pullback into today’s intraday low at 25677, followed by a steep uptrending Gann angle at 25595. We could see a technical bounce on the first test of this angle.

If 25595 fails as support then look for a potential acceleration to the downside with the first target coming in at 25420, followed by 25310 and an uptrending Gann angle at 25275.

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.