Yahoo Finance E-mini Dow Jones Industrial Average (YM) Futures Analysis – Close Under 25004 Produces Weekly Reversal Top
Dow E-mini futures are trading slightly lower during the pre-market session. Sellers followed through to the downside early in the session, confirming yesterday’s potentially bearish closing price reversal top. However, the market rebounded after finding support on a cluster of 50% levels.
At 0741 GMT, September E-mini Dow Jones Industrial Average futures are trading 25027, down 32 or -0.13%.
The Dow is also in a position to post a weekly closing price reversal top. Last week’s close was 25004. Traders should watch this level all session, especially late in the day.
Daily Swing Chart Technical Analysis
The main trend is down according to the daily swing chart. Despite the 14 session rally, the Dow never crossed the main top at 25418. Momentum may be shifting to the downside with the formation of the closing price reversal top and today’s subsequent confirmation.
A trade through 25209 will negate the closing price reversal top and signal a resumption of the uptrend. This will also put the Dow in a position to challenge the next main top at 25418.
The minor trend is up. A trade through 24611 will change the minor trend to down.
The major retracement zone is 24925 to 25337. The Dow is currently trading inside this zone. It is controlling the longer-term direction of the market.
The minor range is 24611 to 25209. Its retracement zone at 24910 to 24839 is the first downside target.
The main range is 23978 to 25209. Its 50% level at 24594 is the next downside target.
A pair of 50% levels at 24925 and 24910 form a support cluster. This area provided intraday support earlier today when buyers came in at 24912.
Daily Swing Chart Technical Forecast
Based on the early price action, the direction of the September E-mini Dow Jones Industrial Average today is likely to be determined by trader reaction to the pivot at 25061.
A sustained move under 25061 will indicate the presence of sellers. This could trigger a retest of 24925 to 24910. If this area fails then look for the selling to extend into 24839.
Look for a possible acceleration to the downside if 24839 fails. This could lead to a break into 24611 to 24594.
A sustained move over 25061 will signal the presence of buyers. If this move creates enough upside momentum then look for a possible test of 25209. Taking out this level could drive the market into 25337 then 25418.
This article was originally posted on FX Empire
