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E-mini Dow Jones Industrial Average (YM) Futures Analysis – Showing Early Counter-Trend Strength

By:
James Hyerczyk
Published: Dec 18, 2018, 02:24 UTC

Based on the early price action, the direction of the March E-mini Dow Jones Industrial Average on Tuesday is likely to be determined by trader reaction to yesterday’s low at 23476.

E-mini Dow Jones Industrial Average

March E-mini Dow Jones Industrial Average futures plunged further into to bear market territory on Monday. The March futures contract posted a new contract low. As the new nearby futures contract because of the rollover from the December contract, it closed in a position to challenge the nearby contract’s low for the year at 23169.

On Monday, March E-mini Dow Jones Industrial Average futures settled at 23685, down 443 or -1.87%. At 0202 GMT, the futures contract is trading 23792, up 107 or +0.45%.

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

Daily Swing Chart Technical Analysis

The main trend is down according to the daily swing chart. The downside momentum will continue on a move under 23476 with the next target price 23169. The main trend will change to up if buyers can take out 24860.

Also due to the prolonged move down in terms of price and time, the market is currently in the window of time to post a closing price reversal bottom. If the trend doesn’t change to up then the next best sign that the buying is greater than the selling at current price level will be the closing price reversal bottom.

Today’s session begins with the Dow down 10 sessions from the December 3 top and four sessions down from the December 12 top.

The new short-term range is 24860 to 23476. Its retracement zone at 24168 to 24331 is the first upside target.

The main range is 26110 to 23476. Its retracement zone is 24793 to 25104. This is important because the 50% level at 24793 forms a resistance cluster with the main top at 24860.

Daily Swing Chart Technical Forecast

Based on the early price action, the direction of the March E-mini Dow Jones Industrial Average on Tuesday is likely to be determined by trader reaction to yesterday’s low at 23476.

A sustained move over 23476 will indicate the presence of buyers. Overtaking the close at 23685 will indicate the buying is getting stronger. This could trigger a surge into the short-term retracement zone at 24168 to 24331.

A sustained move under 23476 will signal that the selling is getting stronger with the next major target coming in at 23169.

Finally, taking out 23476 then turning higher for the session will put the March E-mini Dow Jones Industrial Average in a position to post a potentially bullish closing price reversal bottom.

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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