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E-mini Dow Jones Industrial Average (YM) Futures Analysis – November 2, 2018 Forecast

By:
James Hyerczyk
Published: Nov 2, 2018, 12:21 UTC

With the December E-mini Dow Jones Industrial Average trading at 25672, the direction of the market the rest of the session will be determined by trader reaction to the downtrending Gann angle at 25653.

E-mini Dow Jones Industrial Average

December E-mini Dow Jones industrial Average futures are surging on Friday shortly before the release of the U.S. Non-Farm Payrolls report and the cash market opening. The buying is brisk on reports that the U.S. and China may be close to reaching a trade agreement. Analysts have been saying that the lingering trade dispute between the two countries have been holding back the stock market. So it goes without saying that the end of the trade dispute will be an extremely bullish event.

At 1154 GMT, December E-mini Dow Jones Industrial Average futures are trading 25672, up 347 or +1.37%.

E-mini Dow Jones Industrial Average
Daily December E-mini Dow Jones Industrial Average

Daily Technical Analysis

The main trend is down according to the daily swing chart. However, momentum is trending higher. A trade through 25845 will change the main trend to up according to the daily swing chart. The daily chart indicates there is plenty of room to the upside over this level with 26966 the next major target.

The minor trend is up according to the daily swing chart. This shifted momentum to the upside. In fact, two minor tops were taken out this week at 25007 and 25338.

The market is also trading on the strong side of a pair of retracement zones. These levels are new support at 25233, 25173, 24966 and 24824.

Today’s rally has put the Dow inside the next retracement zone at 25526 to 25866. This range is critical to the chart pattern especially 25845 which forms a price cluster with the Fib level at 25866.

Daily Technical Forecast

With the December E-mini Dow Jones Industrial Average trading at 25672, the direction of the market the rest of the session will be determined by trader reaction to the downtrending Gann angle at 25653.

Bullish Scenario

Overtaking and sustaining the rally over the Gann angle at 25653 will indicate the buying is getting stronger. This could drive the market into the next downtrending Gann angle at 25749. This is the last potential resistance before the 25845 main top.

The target today is the resistance cluster at 25845 to 25866. This could stop the rally, but taking it out could trigger a huge breakout.

Bearish Scenario

If buyers encounter resistance at 25653 then look for a pullback into the 50% level at 25526. Crossing to the weak side of the downtrending Gann angle at 25461 will indicate the selling is getting stronger. This could trigger a hard break into a slew of levels including a 50% level at 25233, a Fibonacci level at 25173 and a steep uptrending Gann angle at 25110.

About the Author

James is a Florida-based technical analyst, market researcher, educator and trader with 35+ years of experience. He is an expert in the area of patterns, price and time analysis as it applies to futures, Forex, and stocks.

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