E-mini Dow Jones Industrial Average (YM) Futures Analysis – November 13, 2017 Forecast

Daily December E-mini Dow Jones Industrial Average futures are expected to open lower based on the pre-market trade. Investors are paring positions in reaction to the lack of clarity over tax reform, Qualcomm’s rejection of Broadcom’s takeover bid and major restructuring at General Electric including the slashing of its dividend.

Daily Technical Analysis

The main trend is up according to the daily swing chart. However, momentum shifted to the downside last week when the minor trend changed to down. The Dow also formed a potentially bearish closing price reversal top on the weekly chart.

A trade through 23260 will indicate the selling is getting stronger with 23203 the next target.

The short-term range is 23557 to 23260. Its 50% level or pivot is 23409.

The main retracement zone comes in at 23254 to 23182. This zone is the primary downside target.

Daily Technical Forecast

Based on the current price at 23306 and the earlier price action, look for a bearish tone as long as the Dow remains under 23409.

The first target angle comes in at 23296. This is followed by the 50% level at 23254 and another uptrending angle at 23251.

Since the main trend is up, we could see buyers come in on a test of anyone of these levels. However, if 23251 fails as support then look for an acceleration to the downside with the main Fib level at 23182 the next major downside target.

Although we can see a technical bounce on a test of any of the potential support levels, the momentum won’t shift to the upside unless buyers can overtake the pivot at 23409 and sustain the rally.