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James Hyerczyk
E-mini Dow Jones Industrial Average Up

December E-mini Dow Jones Industrial Average futures are hovering near their high for the session late Friday as investors wait to hear from President Donald Trump and Chinese Vice Premier Liu He following their meeting at 18:45 GMT. Traders, who view the meeting as a positive sign, are hoping to hear some encouraging news regarding a trade deal after a series of optimistic comments earlier in the session drove the Dow sharply higher.

At 18:41 GMT, December E-mini Dow Jones Industrial Average futures are trading 26922, up 438 or 1.65%.

Prices could surge further later in the session if the two countries could agree to at least a partial agreement on issues such as currency and agriculture buying. A state-run Chinese newspaper said in an editorial Friday that “a partial deal is a more feasible objective.”

Daily Technical Analysis

The main trend is up according to the daily swing chart. The trend turned to up on a trade through 26615 earlier in the session. The main trend will change to down on a move through 25983.

The short-term range is 27312 to 25703. Its retracement zone at 26697 to 26508 is support. Trading on the strong side of this zone is helping to give the Dow a strong upside bias.

The major support zone is 26163 to 25892. It stopped the selling on Thursday at 25983.


Daily Technical Forecast

Based on the early price action and the current price at 26922, the direction of the December E-mini Dow Jones Industrial Average futures contract into the close is likely to be determined by trader reaction to the downtrending Gann angle at 26992.

Bullish Scenario

A sustained move over 26992 will indicate the presence of buyers. This could trigger a fast rally into the minor top at 27112, followed by a downtrending Gann angle at 27152.

Additional upside targets are the downtrending Gann angle at 27232 and the main top at 27262. These prices are the last two potential resistance levels before the 27312 main top.

Bearish Scenario

A sustained move under 26992 will signal the presence of sellers. This could trigger a steep break into the short-term Fibonacci level at 26697, followed by the short-term 50% level at 26508 and the steep uptrending Gann angle at 26471.

The uptrending Gann angle at 26471 is a potential trigger point for an acceleration to the downside with the next two targets the major 50% level at 26163 and the uptrending Gann angle at 26087.

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