Yahoo Finance E-mini Dow Jones Industrial Average (YM) Futures Analysis – May 18, 2018 Forecast
June E-mini Dow Jones Industrial Average futures are called lower shortly before the cash market opening. For three days, the Dow has been trading inside Tuesday’s range. This indicates investor indecision and impending volatility. Traders should prepare for the return of volatility.
Daily Technical Analysis
The main trend is up according to the daily swing chart. A trade through 24971 will signal a resumption of the uptrend.
A trade through 24603 will indicate strong selling pressure.
The short-term range is 24971 to 24603. Its 50% level or pivot is 24787. This level is acting like resistance. It is also controlling the direction of the Dow today.
The main range is 23467 to 24971. Its retracement zone at 24219 to 24042 is the primary downside target.
Daily Technical Forecast
Based on the early trade, the direction of the Dow today is likely to be determined by trader reaction to the downtrending Gann angle at 24767 and the pivot at 24787.
A sustained move under 24767 will signal the presence of sellers. This could lead to a fast move into the week’s low at 24603. This is the trigger point for an acceleration to the downside with the next major targets coming in at 24219, 24171 and 24042.
Overtaking 24787 and sustaining the move will indicate the presence of buyers. This could trigger a move into a steep uptrending Gann angle at 24875. Crossing to the strong side of this angle will put the Dow in a bullish position. This could trigger a breakout over 24971.
Overtaking 24971 could lead to a rally into a long-term downtrending Gann angle at 25151.
Watch for the return of volatility. The daily chart indicates the way of least resistance is down.
This article was originally posted on FX Empire
