September E-mini Dow Jones Industrial Average futures struggled all session due to below average volume on Monday. It closed lower for the session, but managed to erase more than half of its earlier losses.
Technical Analysis
The trend is up according to the minor trend indicator. The first minor top is 21628. However, the secondary lower top at 21624 suggests the selling may be greater than the buying at current price levels. A trade through 21416 will change the minor trend to down. The next minor bottom under this level is 21226.
The short-term range is 21628 to 21416. Its 50% level or pivot is 21522. Trading on the weak side of this level is giving the market a slight downside bias today.
The intermediate range is 21226 to 21628. Its retracement zone at 21427 to 21380 is the next downside target zone.
The main range is 21138 to 21628. Its retracement zone is 21383 to 21325.
The combination of the intermediate and main retracement zones indicates the key support cluster is 21383 to 21380.
Looking ahead to Tuesday, we’re going to be watching trader reaction to the 50% level or pivot at 21522 all session. I think this will tell us if the selling pressure is increasing. If it is then sellers are likely to go after the minor bottom at 21416. Taking out this level should generate a move into the support cluster at 21383 to 21380.
I think the volume is too light to support a breakout to the upside. Therefore, I think the best strategy for bullish investors is to play for a break into a value zone.
This article was originally posted on FX Empire
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