E-mini Dow Jones Industrial Average (YM) Futures Technical Analysis – Rally Slows on Below Average Volume; Set Up for Reversal Top

December E-mini Dow Jones Industrial Average futures are edging higher on Tuesday, shortly after the cash market opening. After hitting a new contract high earlier in the session on optimism over a U.S.-China trade deal, profit-takers drove the Dow back to unchanged. The move suggests investors are already heading to the sidelines ahead of Thursday’s U.S. bank holiday. Historically, the day before and after Thanksgiving are two of the slowest trading days of the year.

At 16:04 GMT, December E-mini Dow Jones Industrial Average futures are trading 28069, up 30 or +0.10%.

The key to trading successfully on a below average volume session is to avoid getting caught in bull or bear trap. Try to avoid buying strength or selling weakness if the volume is not there to support the move.

Daily Technical Analysis

The main trend is up according to the daily swing chart. The uptrend was reaffirmed when buyers took out the previous main top at 28128. The new main bottom is 27643. A trade through this bottom will change the main trend to down.

The first minor range is 27643 to 28149. Its 50% level or pivot is 27896. This is support.

The second minor range is 27337 to 28128. It 50% level at 27743 is another support level.

Daily Technical Forecast

Based on the early price action, the direction of the December E-mini Dow Jones Industrial Average into the close on Wednesday is likely to be determined by trader reaction to yesterday’s close at 28039.

Bullish Scenario

A sustained move over 28039 will indicate the presence of buyers. Overcoming the uptrending Gann angle at 28135 will put the Dow in a bullish position.

Bearish Scenario

A sustained move under 28039 will signal the presence of sellers. It will also put the December E-mini Dow Jones Industrial Average in a position to form a potentially bearish closing price reversal top.

The first downside target is a potential support cluster at 27899 to 27896. Watch for a technical bounce on the first test of this area.

If 27896 fails then look for the selling to possibly extend into the uptrending Gann angle at 27771, followed by the pivot at 27743.