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E-mini Dow Jones Industrial Average (YM) Futures Analysis – October 5, 2018 Forecast

By:
James Hyerczyk
Published: Oct 5, 2018, 11:28 UTC

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 minor Fibonacci level at 26583.

E-mini Dow Jones Industrial Average

E-mini Dow Jones Industrial Average futures are trading slightly higher shortly before the release of the U.S. Non-Farm Payrolls report and the cash market opening. The market is trading inside yesterday’s wide range which indicates investor indecision and impending volatility. It also indicates there was no follow-through to the downside following yesterday’s steep sell-off.

At 1112 GMT, December E-mini Dow Jones Industrial Average futures are trading 26678, up 26 or +0.09%.

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

Daily Technical Analysis

The main trend is up according to the daily swing chart. A trade through 26347 will change the main trend to down. The next two main bottoms come in at 25991 and 25784. A trade through 26966 will signal a resumption of the uptrend.

The minor range is 26347 to 26966. The Dow is currently straddling its retracement zone at 26657 to 26583.

The main range is 25991 to 26966. Its retracement zone is the main support at 26479 to 26363. This zone is controlling the near-term direction of the Dow.

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 minor Fibonacci level at 26583.

A sustained move over 26583 will indicate the presence of buyers. Overcoming the price cluster at 26657 to 26667 will indicate the buying is getting stronger.

The uptrending Gann angle at 26667 will indicate the buying is getting stronger. This could trigger an acceleration to the upside with the next target angle coming in at 26823.

Overcoming the angle at 26823 will put the Dow in a bullish position with 26966 the next upside target.

A sustained move under 26583 will signal the presence of sellers. This could trigger a quick break into an uptrending Gann angle at 26507 and a 50% level at 26479.

Breaking 26479 could trigger a break into a support cluster at 26407, 26363 and 26347.

The trigger point for an acceleration to the downside is 26347. If sellers take out this price with conviction then look for the selling to extend into the next uptrending Gann angle at 26199. This is followed by the main bottom at 25991.

Due to the numerous potential support levels, any selling pressure is likely to be labored until the market trades 26347.

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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