E-mini Dow Jones Industrial Average (YM) Futures Technical Analysis – Approaching 34533 – 34297 Value Zone

December E-mini Dow Jones Industrial Average futures are trading lower late Friday as signs of higher inflation and a drop in Apple shares following an unfavorable court ruling offset expectations of an easing in U.S.-China tensions.

At 18:09 GMT, December E-mini Dow Jones Industrial Average futures are trading 34695, down 58 or -0.17%.

Data earlier in the day showed U.S. producer prices rose solidly in August, leading to the biggest annual gain in nearly 11 years and indicating that high inflation was likely to persist as the pandemic pressures supply chains.

Meanwhile, Dow component Apple Inc fell 2.7% following a U.S. court ruling in “Fortnite” creator Epic Games’ antitrust lawsuit that struck down some of the iPhone maker’s restrictions on how developers can collect payment in apps.

Daily Swing Chart Technical Analysis

The main trend is down according to the daily swing chart. A trade through 34400 will reaffirm the downtrend. A trade through 35383 will change the main trend to up.

The minor trend is also down. A trade through 35076 will change the minor trend to up. This will shift momentum to the upside.

The short-term range is 35429 to 34400. Its retracement zone at 34915 to 35036 is resistance.

The main range is 33533 to 35429. Its retracement zone at 34533 to 34297 is the next downside target area. Look for value buyers on the first test of this area.

Daily Swing Chart Technical Forecast

The direction of the December E-mini Dow Jones Industrial Average into the close on Friday will be determined by trader reaction to 34753.

Bearish Scenario

A sustained move under 34753 will indicate the presence of sellers. The next downside target is the main 50% level at 34533. Look for a technical bounce on the first test of this level.

If 34533 fails as support then look for the selling to extend into the main bottom at 34400. Taking out this level will reaffirm the downtrend with the main Fibonacci level at 34297 the next target.

Bullish Scenario

A sustained move over 34753 will signal the presence of buyers. If this move creates enough late session strength then look for a possible extension of the move into the short-term retracement zone at 34915-35036.