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E-mini Dow Jones Industrial Average (YM) Futures Technical Analysis – 27733 Potential Trigger Point for Steep Break

By:
James Hyerczyk
Published: Nov 20, 2019, 15:42 UTC

Based on the early price action and the current price at 27810, the direction of the December E-mini Dow Jones Industrial Average the rest of the session on Wednesday is likely to be determined by trader reaction to the long-term uptrending Gann angle at 27879.

E-mini Dow Jones Industrial Average Down

December E-mini Dow Jones industrial Average futures are trading lower shortly after the cash market opening on Wednesday. Traders are reacting to renewed concerns over a trade deal after President Trump threatened to raise tariffs if China didn’t agree to a trade deal. China also condemned a Senate resolution supporting pro-democracy protesters in Hong Kong, telling the U.S. to mind their own business.

At 15:22 GMT, December E-mini Dow Jones Industrial Average futures are trading 27810, down 85 or -0.30%.

Traders showed little reaction to a more than 11% jump in Target shares, after the retailer posted quarterly results that easily beat expectations. Shares of Lowe’s also advanced 5.8% on stronger-than-forecast earnings and an improved profit forecast for fiscal 2019.

Later today at 19:00 GMT, investors will get the opportunity to react to the minutes of the Fed’s monetary policy meeting held on October 30.

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. However, momentum is trending lower following the formation of a closing price reversal top on Tuesday and its subsequent confirmation earlier today.

A trade through 28128 will negate the closing price reversal top and signal a resumption of the uptrend. The market is in no position to change the main trend to down, but a closing price reversal top tends to trigger a 2 to 3 day break.

The minor trend is also up. A trade through 27337 will change the minor trend to down. This will confirm the shift in momentum to down.

The first minor range is 27337 to 28128. Its 50% level or pivot at 27733 is the first downside target.

The second minor range is 26847 to 28128. Its pivot at 27488 is the next downside target.

The main range is 26588 to 28128. Its retracement zone at 27358 to 27176 is the primary downside target.

Daily Technical Forecast

Based on the early price action and the current price at 27810, the direction of the December E-mini Dow Jones Industrial Average the rest of the session on Wednesday is likely to be determined by trader reaction to the long-term uptrending Gann angle at 27879.

Bearish Scenario

A sustained move under 27879 will indicate the presence of sellers. If this move creates enough downside momentum then look for the selling to possibly extend into the first pivot at 27733. This is a potential trigger point for an acceleration to the downside with the next target the pivot at 27488.

If 27488 fails then look for the selling to possibly extend into the short-term retracement zone at 27358 to 27176.

Bullish Scenario

Overtaking and sustaining a rally over 27879 will signal the return of buyers. This could create a labored rally, however, with potential resistance angles dropping in at 28000, 28064, 28096 and 28112. The latter is the last potential resistance angle before the 28128 main top.

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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