E-mini Dow Jones Industrial Average (YM) Futures Analysis – Set Up for Surge Over 26584 Pivot

December E-Mini Dow Jones Industrial Average futures settled marginally higher on Friday, erasing a big gain and clawing back some of the week’s losses. The price action suggests the buying may be greater than the selling at current price levels. In also indicates a possible end to the five day sell-off which appears to have been an attempt to alleviate some of the upside pressure. Furthermore, it indicates that buyers may be looking for value at this time.

Daily Swing Chart Technical Analysis

The main trend is up according to the daily swing chart. A trade through 26820 will signal a resumption of the uptrend. A move through 25991 will change the main trend to down.

The main range is 25784 to 26820. Its retracement zone at 26302 to 26180 is support.

The intermediate range is 25991 to 26820. Its 50% level or pivot is 26406. The Dow straddled this price three days in a row last week. Buyers may be trying to establish support at this price.

The short-term range is 26820 to 26347. Its 50% level or pivot at 26584 is the first upside target.

Daily Swing Chart Technical Forecast

Based on Friday’s close at 2919.00 and the price action the last three sessions, the direction of the December E-Mini Dow Jones Industrial Average futures contract today is likely to be determined by trader reaction to the pivot at 26406.

A sustained move over 26406 will indicate the presence of buyers. If this creates enough upside momentum then look for buyers to make a run at 26584. Look for sellers on the first test of this pivot. If buyers can take it out with conviction then I expect to see a surge into 26820 over the near-term.

A sustained move under 26406 will signal the presence of sellers. This could lead to a labored break into 26347 then 26302. The daily chart starts to open up to the downside under 26302 with 26180 the next major target.

Since the main trend is up, buyers could come in on a test of 26302 to 26180. However, if 26180 fails as support then sellers may try to change the main trend to down on a trade through 25991.