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E-mini Dow futures eked out a small gain last week after posting a two-sided on light pre-holiday volume. The market was supported by the dovish Fed minutes that indicated the Fed would be willing to let inflation run above its 2 percent mandate. This essentially means the Fed won’t be as aggressive with rate hikes in 2018 as previously expected.
June E-mini Dow Jones Industrial Average futures settled the week at 24730, up 9 or +0.04%.
Keeping a lid on the market were renewed geopolitical concerns over U.S.-China trade relations and North Korea after President Trump surprisingly canceled a meeting with Kim Jong-un.
Weekly Swing Chart Technical Analysis
The main trend is up according to the weekly swing chart. Despite the steep sell-off in late January/early February, the trend never turned down. Momentum, however, shifted to the downside. It has been trending sideways to lower for 15 weeks.
The main range is 21150 to 26723. Its retracement zone at 23937 to 23279 is the major support. It is also controlling the longer-term direction of the market.
The intermediate range is 26723 to 23122. Its retracement zone at 24923 to 25347 is acting like resistance. Momentum will shift to the upside on a sustained move over this area.
The short-term range is 23467 to 25080. Its retracement zone at 24274 to 24083 is the primary downside target. Since the main trend is up, buyers are likely to come in on a test of this zone.
Weekly Swing Chart Technical Forecast
E-mini Dow Jones Industrial Average (YM) Futures Analysis – Strengthens Over 25347, Weakens Under 24923
A sustained move under 24923 will indicate the presence of sellers. If this move generates enough downside momentum then look for a break into its short-term retracement zone at 24274 to 24083. Since the main trend is up, buyers are likely to come in on a test of this area.
The trigger point for a possible acceleration into 23279 is the main 50% level at 23937.
Overtaking and sustaining a move over 24923 will indicate the presence of buyers. Taking out 25080 will indicate the buying is getting stronger. This could trigger a further move into 25347.
The trigger point for an acceleration to the upside is the Fibonacci level at 25347.
This article was originally posted on FX Empire