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E-mini Dow Jones Industrial Average (YM) Futures Analysis – April 23, 2018 Forecast

By:
James Hyerczyk
Updated: Apr 23, 2018, 14:08 UTC

Based on the early trade, the direction of the Dow today is likely to be determined by trader reaction to the 50% level at 24477.

E-mini Dow Jones Industrial Average

June E-mini Dow Jones Industrial Average futures opened higher on Monday as buyers took a cautious approach to the early trade amid concerns over rising U.S. Treasury yields. While most investors are focused on earnings, some are worried that we could see further weakness in the market like we saw in early February if 10-year U.S. Treasury yields take out the psychological 3 percent level.

E-mini Dow Jones Industrial Average
Daily June E-mini Dow Jones Industrial Average

Daily Swing Chart Technical Analysis

The main trend is up according to the daily swing chart, but a series of retracement levels is preventing the market from taking off to the upside. A trade through 24827 will signal a resumption of the uptrend.

The main range is 23122 to 25832. Its retracement zone at 24477 to 24157 is controlling the near-term direction of the market. It is currently being tested.

Above this zone is potential resistance at 24569 and 24684. This is followed by 24867 and 24923. The latter is a potential trigger point for an acceleration to the upside.

The short-term range is 23306 to 24827. Its retracement zone at 24067 to 23887 is the primary downside target. Since the main trend is up, buyers could show up on a test of this zone. They are going to try to form a secondary higher bottom.

Daily Swing Chart Technical Forecast

Based on the early trade, the direction of the Dow today is likely to be determined by trader reaction to the 50% level at 24477.

A sustained move under 24477 will indicate the presence of sellers. This could drive the Dow into Friday’s low at 24338. This is a potential trigger point for a break into the main Fibonacci level at 24157, followed by the short-term 50% level at 24067 then the short-term Fibonacci level at 23887.

The trigger point for an acceleration to the downside is 23887. The daily chart indicates there is plenty of room to the downside with 23306 the major target.

A sustained move over 24477 will signal the presence of buyers. However, any rally is likely to be labored with potential resistance a 50% level at 24569 and a Fibonacci level at 24684.

Taking out 24827 will signal a resumption of the uptrend, but the Dow could hit resistance at 24867 and 24923. The latter is the trigger point for an acceleration to the upside.

About the Author

James is a Florida-based technical analyst, market researcher, educator and trader with 35+ years of experience. He is an expert in the area of patterns, price and time analysis as it applies to futures, Forex, and stocks.

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