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E-mini Dow Jones Industrial Average (YM) Futures Technical Analysis – Blue Chips Jump on Bank Stocks Surge

James Hyerczyk

September E-mini Dow Jones Industrial Average futures are trading higher at the mid-session. After drifting lower earlier in the session, the blue chip average turned around as bank stocks jumped. Later in the session, the Dow popped even higher as investors cheered positive coronavirus treatment and vaccine news from Gilead Sciences and BioNTech.

At 17:12 GMT, September E-mini Dow Jones Industrial Average futures are trading 25782, up 206 or +0.81%.

Dow Components JPMorgan Chase & Co and Goldman Sachs rose between 2.7% and 3.4% ahead of their financial results next week, which would mark the onset of the second-quarter earnings season.

In other news, JPMorgan said on Friday that Disney parks reopening “removes the largest overhang at the company due to COVID-19.”

“We remain overweight and have increasing conviction that the health of the company is returning throughout several of its segments, with a move toward profitability in F23 at Disney+, the reopening of the parks, and the return of live sports,” analyst Alexia Quadrani wrote. The firm kept its price target at $135. Shares are up 1.46% in midday trading.

Finally, another bright spot was data showing Gilead’s antiviral remdesivir significantly improved clinical recovery and reduced the risk of death in COVID-19 patients in a late-stage study. Gilead’s shares rose 2.5%.

Daily Swing Chart Technical Analysis

The main trend is up according to the daily swing chart, however, momentum has been trending lower since the formation of the closing price reversal top on July 7.

The main trend will change to down on a trade through 24409. A move through 26280 will signal a resumption of the uptrend.

The minor trend is down. It changed to down when sellers took out 25438. This confirms the shift in momentum to down.

The minor range is 24743 to 26280. Its 50% level at 25512 is new support.

The short-term range is 27466 to 24409. Its retracement zone at 25938 to 26298 is potential resistance. This zone stopped the rally at 26280 on July 7.

The main range is 22640 to 27466. Its retracement zone at 25053 to 24484 is the major support.

Daily Swing Chart Technical Forecast

We’re going to be watching a minor pivot at 25787 into the close on Friday.

Bullish Scenario

A sustained move over 25787 will indicate the presence of buyers. If this move is able to generate enough upside momentum into the close, then look for a move into the retracement zone at 25938. Once inside this zone, investors will have to decide whether or not to turn the Dow higher for the week.

Bearish Scenario

A sustained move under 25787 will signal the presence of sellers. This could lead to a retest of the 50% level at 25512. If this fails, then look for the selling to possibly extend into the intraday low at 25293.

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This article was originally posted on FX Empire