E-mini Dow Jones Industrial Average (YM) Futures Analysis – December 07, 2017 Forecast

March E-mini Dow Jones Industrial Average futures are expected to open lower based on the pre-market trade. The Dow was supported earlier in the session by optimism over the progress made towards tax reform. However, gains may have been limited by concerns over a possible government shutdown on Saturday.

Daily Technical Analysis

The main trend is up according to the daily swing chart. However, momentum has shifted to the downside. A trade through 24091 will indicate the selling is getting stronger. A move through 24542 will signal a resumption of the uptrend.

The short-term range is 24542 to 24091. Its retracement zone at 24317 to 24370 is the primary upside target. Aggressive counter-trend sellers are likely to show up on a test of this zone. They are going to try to form a secondary lower top. Bullish trend traders are going to try to take out this zone in an effort to make 24091 a new main bottom.

The main range is 23201 to 24542. If the selling pressure continues then 23872 to 23713 will become the primary upside target.

Daily Technical Forecast

Based on the early trade, the direction of the Dow today is likely to be determined by trader reaction to a steep uptrending Gann angle at 24161.

A sustained move over 24161 will indicate the presence of buyers. This could trigger a labored rally into the short-term 50% level at 24317, a short-term downtrending angle at 24350 and the short-term Fibonacci level at 24370.

We could see a breakout over 24370 with the next target angles 24446 and 24494. The latter is the last potential resistance angle before the 24542 main top.

If the major uptrending Gann angle fails at 24161 then look out to the downside. After clearing yesterday’s low at 24091, the Dow could plunge into the main 50% level at 23872.

Trader reaction to the uptrending Gann angle at 24350 will set the tone of the day.