E-mini Dow Jones Industrial Average (YM) Futures Analysis – October 11, 2018 Forecast

Based on the early price action, the direction of the December E-mini Dow Jones Industrial Average the rest of the week is likely to be determined by trader reaction to the major 50% level at 25233. This level provided support earlier today.
James Hyerczyk
E-mini Dow Jones Industrial Average
E-mini Dow Jones Industrial Average

E-mini Dow Jones Industrial Average futures are lower again early Thursday. Some of the pressure is follow-through selling following yesterday plunge. Some is related to weaker markets in Asia and Europe.

The early price action suggests traders are respecting a key retracement zone on the weekly chart. This zone is important because it appears on all three major charts – monthly, weekly and daily – which means it should attract volume. And volume will tell us if buyers have returned or if sellers are still in control.

We’re looking at the weekly chart because it takes out some of the volatility and emotion. The only pattern you should be watching for on the daily chart is the lower-low, higher-close or closing price reversal bottom.

At 0902 GMT, December E-mini Dow Jones Industrial Average futures are trading 25226, down 297 points or -1.16%.

Weekly December E-mini Dow Jones Industrial Average

Weekly Swing Chart Technical Analysis

The main trend is up according to the weekly swing chart. However, momentum is trending lower. The main trend will change to down on a trade through 24000. A trade through 26966 will signal a resumption of the uptrend.

The minor trend is down. This move shifted momentum to the downside.

The main range is 23500 from the week-ending April 6 to 26966 from the week-ending October 5. Its 50% to 61.8% retracement zone is 25233 to 24824. This zone is major support. It is also controlling the near-term direction of the Dow.

If 26966 to 25174 becomes the new minor range then its retracement zone at 26070 to 26281 will become the primary upside target.

Weekly Swing Chart Technical Forecast

Based on the early price action, the direction of the December E-mini Dow Jones Industrial Average the rest of the week is likely to be determined by trader reaction to the major 50% level at 25233. This level provided support earlier today.

A sustained move over 25233 will indicate the return of buyers. If they can generate enough upside momentum then we could see a retracement into 26070 to 26281 over the near-term. Trader reaction to this zone will determine the direction of the next major move.

A sustained move under 25233 will signal the presence of sellers. This could trigger a spike into 24824. The daily chart opens up to the downside under 24824 with the main bottom at 24000 the next major downside target.

Don't miss a thing!

Discover what's moving the markets. Sign up for a daily update delivered to your inbox

Latest Articles

See All

Expand Your Knowledge

See All
IMPORTANT DISCLAIMERS
The content provided on the website includes general news and publications, our personal analysis and opinions, and contents provided by third parties, which are intended for educational and research purposes only. It does not constitute, and should not be read as, any recommendation or advice to take any action whatsoever, including to make any investment or buy any product. When making any financial decision, you should perform your own due diligence checks, apply your own discretion and consult your competent advisors. The content of the website is not personally directed to you, and we does not take into account your financial situation or needs.The information contained in this website is not necessarily provided in real-time nor is it necessarily accurate. Prices provided herein may be provided by market makers and not by exchanges.Any trading or other financial decision you make shall be at your full responsibility, and you must not rely on any information provided through the website. FX Empire does not provide any warranty regarding any of the information contained in the website, and shall bear no responsibility for any trading losses you might incur as a result of using any information contained in the website.The website may include advertisements and other promotional contents, and FX Empire may receive compensation from third parties in connection with the content. FX Empire does not endorse any third party or recommends using any third party's services, and does not assume responsibility for your use of any such third party's website or services.FX Empire and its employees, officers, subsidiaries and associates, are not liable nor shall they be held liable for any loss or damage resulting from your use of the website or reliance on the information provided on this website.
RISK DISCLAIMER
This website includes information about cryptocurrencies, contracts for difference (CFDs) and other financial instruments, and about brokers, exchanges and other entities trading in such instruments. Both cryptocurrencies and CFDs are complex instruments and come with a high risk of losing money. You should carefully consider whether you understand how these instruments work and whether you can afford to take the high risk of losing your money.FX Empire encourages you to perform your own research before making any investment decision, and to avoid investing in any financial instrument which you do not fully understand how it works and what are the risks involved.
FOLLOW US