E-mini Dow Jones Industrial Average (YM) Futures Analysis – May 28, 2018 Forecast
The Dow is trading nearly flat on Monday. Volume and volatility are light due to the U.S. Memorial Day holiday. There is no cash market today for guidance as well as economic data or earnings reports. The trading session will also end early at 1700 GMT.
At 1425 GMT, June E-mini Dow Jones Industrial Average futures are trading 24745, up 15 or +0.06%.
Daily Swing Chart Technical Analysis
The main trend is up according to the daily swing chart, however, momentum is trending lower.
A trade through 25080 will signal a resumption of the uptrend. A move through 24906 will shift momentum back to the upside, while making 24584 a new secondary higher main bottom.
A trade through 24584 will indicate the selling is getting stronger.
On the upside, a major retracement zone at 24926 to 25351 is the primary target. This zone stopped the rally last week at 25080.
The main range is 23467 to 25080. Its retracement zone at 24274 to 24083 is the primary downside target.
The extremely short-term range is 24584 to 24906. Its 50% level or pivot is 24745. The early price action indicates that this pivot is controlling the direction of the Dow today.
Daily Swing Chart Technical Forecast
Although volume and volatility are expected to remain extremely low, the direction of the Dow the rest of the session is likely to be determined by trader reaction to the pivot at 24745.
A sustained move over 24745 will signal the presence of buyers. If this move happens to generate enough upside momentum, we could see a move into 24906 to 24926.
A sustained move over 24745 will indicate the presence of sellers. If volume increases on this move, we could see a test of 24584. This price is important because it is the trigger point for a potential acceleration to the downside with the next major target coming in at 24274.
In the absence of major reports or news, the Dow is likely to continue to straddle the pivot at 24745 all session. Be careful trading today because you’re probably going to be trading against a computer and it will be easy to get caught in a trap on the wrong side due to the extremely low volume.
This article was originally posted on FX Empire
