E-mini Dow Jones Industrial Average (YM) Futures Analysis – November 20, 2018 Forecast

December E-mini Dow Jones Industrial Average futures are trading sharply lower shortly after the opening on Tuesday. The Dow is trading on the weak side of a series of retracement levels, putting it in a bearish position.

Daily Swing Chart Technical Analysis

The main trend is up, however, momentum is trending lower. Earlier today, sellers took out the closing price reversal bottom at 24782. A trade through 24086 will change the main trend to down.

The minor trend is down. This is why the momentum is trending lower. A trade through 25505 will change the minor trend to up. This will also shift momentum to the upside.

Today’s session begins with the Dow down eight sessions from its last main top. This puts it in the window of time for a closing price reversal bottom.

The Dow is trading on the weak side of a number of retracement levels. They are new resistance. The first set of resistance levels is 24824 and 24920. The next set of resistance levels is 25177 to 25233. The latter is the trigger point for an acceleration to the upside with 25505 to 25526 the next major targets.

Daily Swing Chart Technical Forecast

Bearish Scenario

Look for downside pressure as long as the December E-mini Dow Jones Industrial Average remains under the Fibonacci level at 24824.

If the downside momentum continues to increase, we could see an acceleration into the main bottom at 24086, followed closely by the June 28 bottom at 24000.

Bullish Scenario

Overtaking 24824 will indicate the selling is getting weaker. Crossing to the strong side of 24920 will indicate the buying is getting stronger.

Closing Price Reversal Bottom

Turning higher for the session on a move over 25029 will put the Dow in a position to form a potentially bullish closing price reversal bottom. This could drive the Dow into 25177 to 25233. A sustained move over 25233 could trigger a surge into 25505 to 25526.