E-mini Dow Jones Industrial Average (YM) Futures Analysis – October 1, 2018 Forecast

The settling of the trade dispute between the United States and Canada is helping to boost December E-mini Dow Jones Industrial Average futures shortly after the opening on Monday. Investors are also optimistic because this news may pave the way for an earlier than expected settlement of the trade dispute between the United States and China.

Daily Technical Analysis

The main trend is up according to the daily swing chart. Despite a five-day setback, the trend never changed to down. This suggests that the move was designed to alleviate some of the upside pressure after the market had reached a new all-time high on September 21 at 26820. The main trend will change to down on a trade through 25991.

The minor trend is up. A new minor bottom has formed at 26347. A trade through this level will change the minor trend to down.

The short-term range is 26820 to 26347. Its 50% level or pivot at 26584 should set the tone of the market on Monday.

The main range is 25784 to 26820. Its retracement zone at 26302 to 26180 is the primary downside target.

Daily Technical Forecast

Based on the early price action, the direction of the December E-mini Dow Jones Industrial Average futures contract is likely to be determined by trader reaction to the uptrending Gann angle at 26567.

A sustained move over 26567 will indicate the presence of buyers. Overcoming the pivot at 26584 and a short-term downtrending Gann angle at 26628 will indicate the buying is getting stronger.

Taking out 26628 could trigger an acceleration to the upside with the next target angles coming in at 26724 and 26772. The latter is the last potential resistance angle before the 26820 main top.

A sustained move under 26567 will signal the presence of sellers. The daily chart is open to the downside under this angle with targets coming in at 26436, 26347 and 26302.

The early price action suggests momentum has returned so don’t be surprised by a surge toward 26820.