E-mini Dow Jones Industrial Average (YM) Futures Technical Analysis – Could Collapse if 26697 Fails as Support

Based on the early price action and the current price at 26746, the direction of the December E-mini Dow Jones Industrial Average the rest of the session on Monday is likely to be determined by trader reaction to the Fibonacci level at 26697.
James Hyerczyk
E-mini Dow Jones Industrial Average Up

December E-mini Dow Jones Industrial Average futures are trading lower shortly after the cash market opening after failing to hold on to its earlier gains. Stocks opened higher on Monday, boosted by optimism around U.S.-China trade talks as well as the corporate earnings season. Renewed concerns over Brexit and the progress toward a trade deal may be behind the selling pressure.

At 13:52 GMT, December E-mini Dow Jones Industrial Average futures are trading 26746, down 10 or -0.04%.

Daily December E-mini Dow Jones Industrial Average

Daily Technical Analysis

The main trend is up according to the daily swing chart. The market is in no position to change the main trend to down, but there is room to the downside for a normal correction. A trade through 27088 will signal a resumption of the uptrend.

The main range is 27312 to 25703. Its retracement zone at 26697 to 26508 is the nearest support zone.

Daily Technical Forecast

Based on the early price action and the current price at 26746, the direction of the December E-mini Dow Jones Industrial Average the rest of the session on Monday is likely to be determined by trader reaction to the Fibonacci level at 26697.

Bullish Scenario

A sustained move over 26697 will indicate the presence of buyers. If this creates enough upside momentum then look for the buying to possibly extend into the downtrending Gann angle at 26896. Overcoming this angle will indicate the buying is getting stronger with the next potential target the new main top at 27088.

Bearish Scenario

A sustained move under 26697 will signal the presence of sellers. This could trigger an acceleration into a potential support cluster at 26508 to 26471. Since the main trend is up, look for buyers on the first test of this zone.

A failure to hold 26471 could trigger another acceleration to the downside with the next target a major 50% level at 26163.

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