E-mini Dow Jones Industrial Average (YM) Futures Technical Analysis – Decision Time on Test of 28059 – 28293

December E-mini Dow Jones Industrial Average futures are trading higher at the mid-session on Monday, amid a slew of corporate deal-making activity as the market tried to recover from its first back-to-back weekly declines in months. Shares of Dow component Apple were higher by 2.1%. Apple shares are down 11% this month.

At 16:01 GMT, December E-mini Dow Jones Industrial Average futures are trading 27884, up 391 or +1.42%.

Sentiment jumped early Monday after drugmaker AstraZeneca resumed its British clinical trials of its COVID-19 vaccine, one of the most advanced in development.

Daily Swing Chart Technical Analysis

The main trend is down according to the daily swing chart, however, momentum may be getting ready to shift to the upside following the formation of a closing price reversal bottom on September 9.

A trade through 27068 will negate the closing price reversal bottom chart pattern and signal a resumption of the downtrend.

A trade through 28071 will confirm the potentially bullish chart pattern. This will shift momentum to the upside.

The main range is 25777 to 29050. Its retracement zone at 27414 to 27027 is support. This zone stopped the selling at 27068 last week.

The minor range is 27068 to 28071. Its 50% level at 27570 is support.

The short-term range is 29050 to 27068. Its retracement zone at 28059 to 28293 is the nearest upside target.

Daily Swing Chart Technical Forecast

Holding 25750 early in the session is helping to generate some strong upside momentum. This is likely to lead to a test of 28059 to 28071. Overcoming the latter could extend the rally into 28293.

The 28059 to 28293 retracement zone is very important to the chart pattern. Since the main trend is down, sellers are likely to come in on a test of this zone. They are going to try to form a potentially bearish secondary lower top.

Overtaking 28293 could trigger an acceleration to the upside. If this move creates enough upside momentum then look for a possible acceleration into 29050.