E-mini Dow Jones Industrial Average (YM) Futures Analysis – November 5, 2018 Forecast

December E-mini Dow Jones Industrial Average futures are trading higher shortly after the cash market opening. Volume and volatility are relatively tight as many of the major players have taken to the sidelines ahead of Tuesday’s U.S. mid-term elections. Investors are a little indecisive because several of the polls indicate the results are too close to call. Generally speaking, stocks are likely to be supported if the Republicans retain control of Congress.

At 1448 GMT, December E-mini Dow Jones Industrial Average futures are trading at 25318, up 77 or +0.31%.

Daily Swing Chart 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. A move through 24086 will signal a resumption of the downtrend.

The minor trend is up. A trade through the minor top at 25684 will indicate that the buying is getting stronger.

The major, longer-term retracement zone is 25233 to 24824. Inside this zone is a short-term retracement zone at 25173 to 24966. Combining the two zones creates a price cluster at 25233 to 25173. This area is providing support today.

The main range is 26966 to 24086. Its retracement zone at 25526 to 25866 is resistance. This zone stopped the rally at 25684 on Friday.

If 24086 to 25684 becomes a range then its retracement zone at 24885 to 24696 will become the primary downside target zone.

Daily Swing Chart Technical Forecast

Based on the early trade, the direction of the December E-mini Dow Jones Industrial Average futures contract the rest of the session is likely to be determined by trader reaction to 25233 to 25173.

A sustained move over 25233 will indicate the presence of buyers. If this creates enough upside momentum then look for a potential acceleration into 25526.

A sustained move under 25173 will signal the presence of sellers. This could trigger a break into a series of retracement levels at 24966, 24885 and 24824.

We’re looking for a possible two-sided trade today due to the low volume. Traders appear to be a little reluctant to take a position ahead of the Tuesday’s elections.