E-mini Dow Jones Industrial Average (YM) Futures Analysis – Holding 25233 Sets Up Potential Rally into 25930 to 26174

The E-mini Dow Jones Industrial Average futures contract is trading higher during the pre-market session as prices continue to consolidate following last week’s steep sell-off. Investors are trying to build a support base inside the 50% to 61.8% zone of this year’s trading range.

If successful then we should see a retracement of the sell-off from 26966 to 24893. This should set up the next shorting opportunity.

At 0623 GMT, December E-mini Dow Jones Industrial Average futures are trading 25250, up 49 or +0.19%.

Daily Swing Chart Technical Analysis

The main trend is down according to the daily swing chart. A trade through 24893 will signal a resumption of the downtrend. The next downside target is the main bottom at 24000. The trend will change to up on a trade through 26966.

The main range is 23500 to 26966. The market is trying to establish support inside its retracement zone at 25233 to 24824. Last week’s low at 24893 was inside this zone. This area is controlling the near-term direction of the Dow.

If a short-term range forms between 26966 to 24893 then its retracement zone at 25930 to 26174 will become the primary upside target.

Daily Swing Chart Technical Forecast

Based on the early price action, the direction of the December E-mini Dow Jones Industrial Average futures contract on Tuesday is likely to be determined by trader reaction to the main 50% level at 25233.

A sustained move over 25233 will indicate the presence of buyers. If this move can create enough upside momentum then the near-term target becomes the retracement zone at 25930 to 26174.

A sustained move under 25233 will signal the presence of sellers. This could generate the downside momentum needed to challenge last week’s low at 24893, followed by the main Fibonacci level at 24824.

The Fib level is a potential trigger point for an acceleration to the downside with the main bottom at 24000 the next downside target.