E-mini Dow Jones Industrial Average (YM) Futures Technical Analysis – Momentum Shifts to Downside Under 26697

Based on the early price action, the direction of the December E-mini Dow Jones Industrial Average on Tuesday is likely to be determined by trader reaction to the downtrending Gann angle at 26880.
James Hyerczyk
E-mini Dow Jones Industrial Average Down

December E-mini Dow Jones Industrial Average futures are trading lower shortly after the cash market opening. The Dow was boosted during the pre-market session by a 1.5% gain in shares of United Technologies and a 4.2% jump in shares of Procter & Gamble. However, the buying didn’t last as disappointing results from McDonald’s put a lid and prices.

At 13:46 GMT, December E-mini Dow Jones Industrial Average futures are trading 26777, down 20 or -0.08%.

Daily December E-mini Dow Jones Industrial Average

Daily Technical Analysis

The main trend is up according to the daily swing chart. A trade through 27088 will signal a resumption of the uptrend. The market is not in a position to change the main trend to down, but there is room for a test of a key retracement zone.

The minor trend is also up. A trade through 26701 will change the minor trend to down. This will shift momentum to the downside.

The main range is 27312 to 25703. Its retracement zone at 26697 to 26508 is the next downside target. Since the main trend is up, buyers could step in on a test of this area.

Daily Technical Forecast

Based on the early price action, the direction of the December E-mini Dow Jones Industrial Average on Tuesday is likely to be determined by trader reaction to the downtrending Gann angle at 26880.

Bearish Scenario

A sustained move under 26880 will indicate the presence of sellers. The first target downside target is the minor bottom at 26701, followed closely by the main Fibonacci level at 26697.

The Fib level at 26697 is a potential trigger point for an acceleration into and uptrending Gann angle at 26535. Look for buyers on the first test of this angle.

If 26535 fails then look for the selling to possibly extend into the main 50% level at 26508.

Bullish Scenario

Overtaking and sustaining a rally over 26880 will signal the return of buyers. If this move is able to generate enough upside momentum then look for the rally to possibly lead to a test of 27088 to 27096.

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