E-mini Dow Jones Industrial Average (YM) Futures Analysis – October 29, 2018 Forecast

December E-mini Dow Jones Industrial Average futures are trading sharply higher shortly after the cash market opening on Monday. The market is following through to the upside after Friday’s near reversal bottom on Friday. The trend is down, however, the daily chart indicates there is enough room to the upside to complete a normal correction.

Daily Technical Analysis

The main trend is down according to the daily swing chart. However, the market is beginning to show signs of a shift in momentum to the upside.

A trade through 24415 will signal a resumption of the downtrend with the June 28 bottom at 24000 the next likely downside target. The main trend will change to up on a trade through 25845.

The minor trend is also down. However a new minor bottom has formed at 24415. A trade through 25338 will change the minor trend to up. This will also shift momentum to the upside.

The major retracement zone is 25233 to 24824. This zone is controlling the longer-term direction of the Dow. After regaining the lower of Fibonacci level at 24824, the market is now trading inside the major retracement zone.

The minor range is 25338 to 24415. Its 50% level or pivot at 24877 is controlling the intraday direction of the Dow.

The short-term range is 25845 to 24415. Its retracement zone at 25130 to 25299 is the primary upside target today. This zone straddles the major 50% level at 25233, making it a very important area. Since the main trend is down, sellers are likely to come in on a test of this area.

The main range is 26966 to 24415. Its retracement zone at 25691 to 25992 is the next target zone.

Daily Technical Forecast

Based on the early price action, the direction of the December E-mini Dow Jones Industrial Average futures contract on Monday is likely to be determined by trader reaction to the 50% level at 24877.

Bullish Scenario

A sustained move over 24877 will indicate the presence of buyers. If the move generates enough upside momentum then look for the rally to extend into the series of retracement levels at 25130, 25233 and 25299. This is followed by a downtrending Gann angle at 25333. Since the main trend is down, look for sellers into the series of levels.

Bearish Scenario

A sustained move under 24877 will signal the presence of sellers. The first target is a combination Fib level at 24824 and a steep downtrending Gann angle at 24821.

A failure at 24821 will indicate the selling is getting stronger with the next target angle coming in at 24662. Crossing to the weak side of this angle will put the futures contract in a bearish position with the next target coming in at 24415. This is a potential trigger point for an acceleration into 24000.