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James Hyerczyk
E-mini Dow Jones Industrial Average
E-mini Dow Jones Industrial Average

The E-Mini Dow Jones Industrial Average futures contract closed lower last week. The weakness was attributed to trade concerns and a drop in bank stocks following the Fed’s interest rate and monetary policy decisions. Underpinning the market was a solid performance by shares of Apple. The Dow also posted an inside move which tends to indicate investor indecision and impending volatility. It could also indicate a transition from uptrend to downtrend, but it’s too early to tell.

For the week, December E-mini Dow Jones Industrial Average futures settled at 26476, down 278 or -1.04%.

Weekly December E-mini Dow Jones Industrial Average

Weekly Technical Analysis

The main trend is up according to the weekly swing chart. A trade through 26820 will signal a resumption of the uptrend. The main trend will change to down on a trade through 24000.

The minor trend is also up. A trade through 25784 will change the minor trend to down. This will also shift momentum to the downside.

The minor range is 25784 to 26820. Its 50% level or pivot at 26302 was support last week.

The next minor range is 24970 to 26820. Its 50% level or pivot at 25895 is the next support.

The main range is 24000 to 26820. Its retracement zone at 25410 to 25077 is the primary downside target.

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Weekly Technical Forecast

Based on last week’s close at 26476, the direction of the December E-Mini Dow Jones Industrial Average this week is likely to be determined by trader reaction to the minor pivot at 26302.

Bullish Scenario

A sustained move over 26302 will indicate the presence of buyers. If this creates enough upside momentum then look for investors to make a run at 26820 or a new all-time high.

Bearish Scenario

A sustained move under 26302 will signal the presence of sellers. This could trigger a steep break into the next minor pivot at 25895. This is followed closely by a steep uptrending Gann angle at 25792 and a minor bottom at 25784.

If 25784 is taken out then look for the selling to continue into the main retracement zone at 25410 to 25077.

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