E-mini Dow Jones Industrial Average (YM) Futures Technical Analysis – Needs to Hold 29164 to Sustain MomentumThe direction of the December E-mini Dow Jones Industrial Average on Monday is likely to be determined by trader reaction to the pivot at 29164.
December E-mini Dow Jones Industrial Average futures are trading higher early Monday as vaccine optimism returned, off-setting some of the skepticism over the logistics of distributing a coronavirus vaccine to the masses that pressured prices late last week. Traders also said that strong economic data from China and Japan outweighed pandemic concerns despite rising cases in the United States and Europe.
At 05:30 GMT, December E-mini Dow Jones Industrial Average futures are trading 29676, up 266 or +0.90%.
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Cisco Systems Inc and Walt Disney Co were the top gainers among the Dow components. The network gear maker jumped 7.7% premarket as it gained from work-from-home driven surge in demand, while Disney rose 4.3% as its rapidly growing streaming video business and a partial recovery at its theme parks limited its quarterly loss.
Daily Swing Chart Technical Analysis
The main trend is up according to the daily swing chart. Upside is also strengthening. A trade through 30000 will signal a resumption of the uptrend. A move through the nearest main bottom at 25953 will change the main trend to down although this is highly unlikely.
The minor trend is also up. The two minor bottoms at 28815 and 28781 are support.
The minor range is 28328 to 30000. Its 50% level or pivot at 29164 is new support. The Dow is currently trading on the bullish side of this level.
The short-term range is 25953 to 30000. Its retracement zone at 27977 to 27499 is potential support.
Daily Swing Chart Technical Forecast
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 29164.
A sustained move over 29164 will indicate the presence of buyers. If this creates enough upside momentum then look for the rally to possibly extend into the all-time high at 30000.
A sustained mover under 29164 will signal the presence of sellers. The first downside targets are 28815 and 28781. Taking out the latter could trigger a spike into 28328, last week’s low.
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