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E-mini Dow Jones Industrial Average (YM) Futures Analysis – October 10, 2014 Forecast

By:
James Hyerczyk
Updated: Aug 25, 2015, 00:00 UTC

The December E-mini Dow Jones Industrial Average futures contract opened steady on Thursday, but buyers couldn’t sustain the move over the major 50% level

Daily December E-mini Dow Jones Industrial Average

The December E-mini Dow Jones Industrial Average futures contract opened steady on Thursday, but buyers couldn’t sustain the move over the major 50% level at 16908. The subsequent break under this level triggered the start of a massive sell-off which lead to a break through the retracement zone support at 16711 to 16577.

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

The close near the low of the session puts the market in a position to continue the move on Friday, but traders are going to have to take out the Fibonacci level at 16577 with conviction in order to generate enough downside momentum to take out the nearest support angle at 16495.

A sustained move under 16495 is likely to lead to further downside pressure with the angle at 16319 the next likely downside target.

Holding the Fibonacci level at 16577 may stabilize the market enough to trigger a rally back to the 50% level at 16711. Overcoming this level could lead to a test of the major downtrending angle at 16799.

The new short-term range is 17279 to 16537. This makes its retracement zone at 16908 to 16996 the best upside target. This zone has stopped the Dow twice so taking it out later will be a sign of strength.

The tone of the session is likely to be determined by trader reaction to the Fibonacci level at 16577. 

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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