E-mini Dow Jones Industrial Average (YM) Futures Technical Analysis – Closing Under 26716 Signals Weakness

Based on the early price action and the current price at 26751, 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 uptrending Gann angle at 26716.
James Hyerczyk
E-mini Dow Jones Industrial Average

December E-mini Dow Jones Industrial Average futures are heading down on Friday and in a position to finish lower for a second consecutive week. After a pretty mundane trade earlier in the session, sellers came in hard after reports said the White House is considering limits on U.S. investment into China. The move erased the optimism that had been building all week over the restart of trade talks on October 10 and aggravating, but not escalating the trade dispute between the two economic powerhouses.

At 19:37 GMT, December E-mini Dow Jones Industrial Average futures are trading 26751, down 144 or -0.54%.

If China considers the anticipated move by the United States an escalation then they could cancel the meeting, claiming that once again the U.S. is not operating on good faith. This would be extremely bearish for stocks.

Daily December E-mini Dow Jones Industrial Average

Daily Technical Analysis

The main trend is down according to the daily swing chart. A trade through 26686 will signal a resumption of the downtrend after three days of sideways price action. The main trend will change to up on a trade through 27312.

The minor trend is also down. A move through 27112 will change the minor trend to up. This will also shift momentum to the upside.

The minor range is 27312 to 26686. Its 50% level or pivot at 26999 is resistance.

The short-term range is 25244 to 27312. Its retracement zone at 26278 to 26034 is the primary downside target.

Daily Technical Forecast

Based on the early price action and the current price at 26751, 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 uptrending Gann angle at 26716.

Bearish Scenario

A sustained move under 26716 will indicate the presence of sellers. This could trigger a quick break into 26686. Taking out this minor bottom is likely to lead to a test of the downtrending Gann angle at 26543.

The angle at 26543 is a potential trigger point for an acceleration to the downside with the next target the short-term 50% level at 26278. If this level fails then look for the selling to possibly extend into the short-term Fibonacci level at 26034, followed by another uptrending Gann angle at 25980.

Bullish Scenario

A sustained move over 26716 will signal the presence of buyers. If this move creates enough upside momentum then look for the rally to possibly extend into a downtrending Gann angle at 26959, followed by the short-term pivot at 26999.

Don't miss a thing!

Discover what's moving the markets. Sign up for a daily update delivered to your inbox

Latest Articles

See All

Expand Your Knowledge

See All
The content provided on the website includes general news and publications, our personal analysis and opinions, and contents provided by third parties, which are intended for educational and research purposes only. It does not constitute, and should not be read as, any recommendation or advice to take any action whatsoever, including to make any investment or buy any product. When making any financial decision, you should perform your own due diligence checks, apply your own discretion and consult your competent advisors. The content of the website is not personally directed to you, and we does not take into account your financial situation or needs.The information contained in this website is not necessarily provided in real-time nor is it necessarily accurate. Prices provided herein may be provided by market makers and not by exchanges.Any trading or other financial decision you make shall be at your full responsibility, and you must not rely on any information provided through the website. FX Empire does not provide any warranty regarding any of the information contained in the website, and shall bear no responsibility for any trading losses you might incur as a result of using any information contained in the website.The website may include advertisements and other promotional contents, and FX Empire may receive compensation from third parties in connection with the content. FX Empire does not endorse any third party or recommends using any third party's services, and does not assume responsibility for your use of any such third party's website or services.FX Empire and its employees, officers, subsidiaries and associates, are not liable nor shall they be held liable for any loss or damage resulting from your use of the website or reliance on the information provided on this website.
This website includes information about cryptocurrencies, contracts for difference (CFDs) and other financial instruments, and about brokers, exchanges and other entities trading in such instruments. Both cryptocurrencies and CFDs are complex instruments and come with a high risk of losing money. You should carefully consider whether you understand how these instruments work and whether you can afford to take the high risk of losing your money.FX Empire encourages you to perform your own research before making any investment decision, and to avoid investing in any financial instrument which you do not fully understand how it works and what are the risks involved.