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September E-mini Dow Jones Industrial Average futures are trading higher early Monday after gapping on the opening. The catalyst behind the jump in prices is the announcement of renewed trade talks between the United States and China. Investors appear to be optimistic that the two economic powerhouses will hammer out a deal over the near-term that will bring an end to the long trade spat.
At 02:55 GMT, September E-mini Dow Jones Industrial Average futures are trading 26798, up 205 or +0.77%.
Daily Swing Chart Technical Analysis
The main trend is up according to the daily swing chart. A trade through 26922 will signal a resumption of the uptrend. A trade through 26445 will change the main trend to down.
The short-term range is 26922 to 26445. Its retracement zone at 26740 to 26684 is new support.
The intermediate range is 25897 to 26922. If the trend changes to down then look for a pullback into its retracement zone at 26410 to 26289.
The main range is 24626 to 26922. If there is a steep sell-off then its retracement zone at 25774 to 25503 will become the primary downside target.
Daily Swing Chart 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 short-term Fibonacci level at 26740.
Bullish Scenario
A sustained move over 26740 will indicate the presence of buyers. If this move creates enough upside momentum then look for the rally to possibly extend into the main top at 26922. Taking out this level could trigger a rally into the October 3, 2018 main top at 27031.
Bearish Scenario
A sustained move under 26740 will signal the presence of sellers. This is followed closely by the short-term 50% level at 26684. If this price level fails, we could see an acceleration to the downside with the next two targets the main bottom at 26445 and the intermediate 50% level at 26410.
This article was originally posted on FX Empire