E-mini Dow Jones Industrial Average (YM) Futures Technical Analysis – Direction Being Controlled by 26999 Pivot

December E-mini Dow Jones Industrial Average futures are trading higher in the pre-market session on Monday, helped by upbeat factory activity data from China. Helping to keep a lid on prices are worries the White House may place limits on U.S. investment into China. The news helped drive the stock market lower on Friday.

At 06:12 GMT, December E-mini Dow Jones Industrial Average futures are trading 26869, up 73 or +0.285.

Daily Swing Chart Technical Analysis

The main trend is down according to the daily swing chart. A trade through 26686 will reaffirm the downtrend. The main trend will change to up on a move through 27262.

The minor trend is also down. The minor trend changes to up on a move through 27112. This will also shift momentum to the upside. A trade through 26686 will indicate the selling is getting stronger.

The short-term range is 27312 to 26686. Its 50% level or pivot at 26999 has been providing resistance the last four sessions.

The main range is 27375 to 25014. Its retracement zone at 26473 to 26278 is the first downside target.

The intermediate range is 25244 to 27312. Its retracement zone at 26278 to 260234 is another potential downside target.

Combining the two ranges creates a potential support cluster at 26278 to 26195. We could see a technical bounce on the first test of this area.

Daily Swing Chart Technical Forecast

Based on last week’s price action and the current price at 26869, the direction of the December E-mini Dow Jones Industrial Average on Monday is likely to be determined by trader reaction to the pivot at 26999.

Bearish Scenario

A sustained move under 26999 will indicate the presence of sellers. If this creates enough downside momentum then look for the selling to possibly extend into last week’s low at 26686. If this fails then look for the selling to possibly extend into the main Fibonacci level at 26473. This level is a potential trigger point for an acceleration into the support cluster at 26278 to 26195.

Bullish Scenario

Overtaking and sustaining a rally over 26999 will signal the presence of buyers. This could trigger a surge into the minor top at 27112, followed by four main tops at 27262, 27312, 27338 and 27375.