E-mini Dow Jones Industrial Average (YM) Futures Technical Analysis – Next Potential Upside Target 25938

September E-mini Dow Jones Industrial Average futures are trading nearly flat at the mid-session after clawing back a nearly 900-point loss. In the cash market, the Dow traded marginally higher after falling 762 points earlier.

At 17:30 GMT, September E-mini Dow Jones Industrial Average futures are at 25401, up 3 or +0.01%.

Airlines and cruise lines – two groups that stand to benefit the most from a successful reopening – recovered most of their earlier losses. Delta, American and Southwest were all positive while Carnival was down just 2.6%.

The volatile price action was fueled as traders weighed the prospects of the economy reopening alongside those of a resurgence in coronavirus cases.

Daily Swing Chart Technical Analysis

The main trend is up according to the daily swing chart, however, momentum is trending lower. A trade through 22640 will change the main trend to down. A move through 27466 will signal a resumption of the uptrend.

The minor trend is down. This is controlling the momentum.

The main range is 29467 to 18053. Its retracement zone at 25107 to 23760 is controlling the longer-term direction of the Dow.

The short-term range is 22640 to 27466. Its retracement zone at 25053 to 24484 is additional support. It falls inside the main retracement zone. This zone provided support earlier in the session.

The minor range is 27466 to 24409. Its 50% level at 25938 is the primary upside target. Since the main trend is down, sellers are likely to come in on a test of this level.

Daily Swing Chart Technical Forecast

Based on the early price action and the current price at 25401, the direction of the September E-mini Dow Jones Industrial Average into the close is likely to be determined by trader reaction to 25107.

Bullish Scenario

A sustained move over 25107 will indicate the presence of buyers. If this creates enough upside momentum then look for a rally into 25938.

Look for sellers on the first test of 25938. Taking this level out, however, could trigger an acceleration to the upside.

Bearish Scenario

A sustained move under 25107 will signal the presence of sellers. The first downside targets are 24484 and 24409.

Taking out 24409 will indicate the selling is getting stronger with 23760 the next likely downside target.