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E-mini Dow Jones Industrial Average (YM) Futures Analysis – October 20, 2014 Forecast

By:
James Hyerczyk
Updated: Aug 25, 2015, 02:00 UTC

On Friday, December E-mini Dow Jones Industrial Average futures closed on the strong side of a steep downtrending angle from the all-time high and on the

Daily December E-mini Dow Jones Industrial Average

On Friday, December E-mini Dow Jones Industrial Average futures closed on the strong side of a steep downtrending angle from the all-time high and on the bullish side of a major 50% level at 16182. The price action helped make 15769 a new minor bottom.

The short-term range is 16949 to 15769. The 50% level of this range is today’s first upside target at 16359.   

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

The main range is 17279 to 15769. Its retracement zone at 16524 to 16702 is the next major upside target. A downtrending angle from the 17279 top passes through the retracement zone at 16607, making it a valid upside target also. Since the main trend is down on the daily chart, watch for profit-taking on the initial test of this zone.

Falling back below 16182 will be a sign of selling pressure, but dropping back under 15935 will be a sign the selling pressure is getting stronger. Breaking back under the major Fibonacci level at 15923 could mean sellers are coming after the minor bottom at 15769.

Look for a bullish tone on a sustained move over 16359 and a bearish tone under 16182. Watch for an expanded range today because of the distance between the retracement zones. The distance from the 50% level at 16359 and the next 50% level at 16524 is 165 points. From the 16524 level to the Fibonacci level at 16702 is 178 points. On the downside, the distance between the 50% level at 16359 and the 50% level at 16182 is 177 points.

The huge space between levels suggests the market could go on tremendous runs today. Look for bigger than normal moves on the intraday charts. 

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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