E-mini Dow Jones Industrial Average (YM) Futures Analysis

E-mini Dow Jones Industrial Average (YM) Futures Analysis – August 23, 2017 Forecast

James Hyerczyk

Updated Wed, Aug 23, 2017, 3:02 AM

September E-mini Dow Jones Industrial Average futures are trading lower during the pre-market session. There was a slight follow-through to the upside early in the session, but sellers came in to stop the move and the buying dried up.

Technical Analysis

The main trend is down according to the daily swing chart. The momentum has shifted to up, but all the market has done is rally into a retracement zone cluster.

A trade through 22067 will change the main trend to up with 22132 the next upside target. A move through 21579 will signal a resumption of the downtrend.

The main range is 22132 to 21579. The market is currently trading inside its retracement zone at 21856 to 21921.

The intermediate range is 22067 to 21579. Its retracement zone at 21823 to 21881 overlaps the main retracement zone, forming a possible resistance cluster.

A new short-term range may be forming between 21579 and 21900. If there is a sell-off then its retracement zone at 21740 to 21702 will become the primary downside target.

Daily September E-mini Dow Jones Industrial Average

Forecast

Based on the current price at 21852 at 0852 GMT, the direction of the Dow today is likely to be determined by trader reaction to the main 50% level at 21856.

A sustained move over 21856 will signal the presence of buyers. This could trigger a labored rally into 21881, 21900 and 21921.

The daily chart begins to open up to the upside over 21921 with the next target angle coming in at 21956. This is the trigger point for an acceleration to the upside with potential targets at 22044 and 22067. This area is the last potential resistance before the 22132 main top.

A sustained move under 21856 will indicate the presence of sellers. The first target is a steep uptrending angle at 21835, followed by a 50% level at 21823.

The daily chart opens up to the downside under 21823 with the next downside targets coming in at 21780, 21740, 21707 and 21702.

Watch for counter-trend buyers on a test of 21740 to 21702. The uptrending angle also passes through this zone at 21707, making it a valid downside target.

We could see a choppy, two-sided trade until the Dow moves away from the cluster of retracement levels.

This article was originally posted on FX Empire