E-mini Dow Jones Industrial Average (YM) Futures Technical Analysis – Poised to Surge Over 26014 into Close

March E-mini Dow Jones Industrial Average futures are trading higher at the mid-session on Friday, boosted by hopes of a U.S.-China trade deal. President Donald Trump is scheduled to meet with Chinese Vice Premier Liu He later on Friday. The meeting comes after a U.S. delegation met with Chinese President Xi Jinping last week.

At 17:12 GMT, March E-mini Dow Jones Industrial Average futures are trading 26031, up 198 or +0.77%.

The Dow is also being underpinned by shares of Intel, which rose more than 2.5 percent after Morgan Stanley upgraded the stock to overweight from equal weight, noting Intel could get a boost now that Bob Swan is the full-time CEO.

Daily Swing Chart Technical Analysis

The main trend is up according to the daily swing chart. A trade through 26082 will negate a closing price reversal top and signal a resumption of the uptrend after yesterday’s steep sell-off.

The minor trend is also up. A new minor top was formed at 26082 on Thursday.

A trade through 25753 will confirm the closing price reversal top and shift momentum to the downside. This could lead to the start of a 2 to 3 day counter-trend sell-off.

The short-term range is 25275 to 26082. Its retracement zone at 25679 to 25583 is the first downside target.

Daily Swing Chart Technical Forecast

Based on the current price at 26031, the direction of the March E-mini Dow Jones Industrial Average futures contract into the close on Friday is likely to be determined by trader reaction to the uptrending Gann angle at 26014.

Bullish Scenario

Overtaking and sustaining a rally over 26014 will indicate the presence of buyers. If this move creates enough upside momentum then look for a move into the closing price reversal top at 26082, followed closely by the December 3 main top at 26110.

The main top at 26110 is the trigger point for an acceleration to the upside with the next major target the November 8 main top at 26300.

Bearish Scenario

The inability to overcome and sustain a move over 26014 will signal the presence of sellers. If this move creates enough downside momentum then look for a sharp break into the next uptrending Gann angle at 25787. If this angle fails then look for another acceleration into the short-term 50% level at 25679.