E-mini Dow Jones Industrial Average (YM) Futures Technical Analysis – Needs to Hold 27746 to Sustain Upside Momentum

Based on the early activity and the current price at 27814, the direction of the December E-mini Dow Jones Industrial Average the rest of the session on Friday is likely to be determined by trader reaction to Thursday’s close at 27746.
James Hyerczyk
E-mini Dow Jones Industrial Average

December E-mini Dow Jones Industrial Average futures are trading higher early Friday as investors digested recent developments on U.S.-China trade. Increased demand for risky assets is being fueled by comments from a White House official.

The Trump Administration’s economic adviser Larry Kudlow said Thursday that Washington is “getting close” to a trade deal with Beijing, Reuters reported. This news was enough to offset a report from the Wall Street Journal earlier in the week that said negotiations between the two economic powerhouses had hit a snag over agricultural purchases.

At 08:42 GMT, December E-mini Dow Jones Industrial Average futures are trading 27814, up 68 or +0.25%.

Daily December E-mini Dow Jones Industrial Average

Daily Swing Chart Technical Analysis

The main trend is up according to the daily swing chart. The uptrend was reaffirmed earlier on Friday when buyers took out yesterday’s high. The main trend will change to down on a trade through 26588.

A change in trend is highly unlikely. However, due to the prolonged move up in terms of price and time, the market is currently inside the window of time for a closing price reversal top. This chart pattern won’t change the trend to down, but it could lead to the start of a 2 to 3 day counter-trend correction.

The minor trend is also up. A trade through 27337 will change the minor trend to down. This will shift momentum to the downside.

The rolling minor range is 27337 to 27868. Its 50% level at 27603 is potential support.

The second rolling minor range is 26847 to 27868. Its 50% level at 27358 is another potential support level.

Daily Swing Chart Technical Forecast

Based on the early activity and the current price at 27814, the direction of the December E-mini Dow Jones Industrial Average the rest of the session on Friday is likely to be determined by trader reaction to Thursday’s close at 27746.

Bullish Scenario

A sustained move over 27746 will indicate the presence of buyers. If this creates enough upside momentum then look for the market to continue to grind higher.

Bearish Scenario

A sustained move under 27746 will signal the return of sellers. This will put the Dow in a position to form a potentially bearish closing price reversal top. The first downside target is the 50% level at 27603. This is a potential trigger point for an acceleration into the next 50% level at 27358.

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