E-mini Dow Jones Industrial Average (YM) Futures Technical Analysis – Selling Pressure Puts 35915 on Radar

December E-mini Dow Jones Industrial Average futures are trading lower at the mid-session on Tuesday. The blue chip average is under pressure as a solid rise in producer prices in October deepened concerns over inflation.

At 17:00 GMT, December E-mini Dow Jones Industrial Average futures are trading 36167, down 121 or -0.33%.

In economic news, wholesale prices jumped 8.6% in October from a year ago, the hottest annual pace on record in nearly 11 years, the Labor Department said Tuesday. The October producer price index (PPI) rose 0.6% month over month, in line with the Dow Jones consensus estimate.

In stock related news, the best performing Dow component is Cisco Systems Inc, up 0.93%. The worst performers are Visa Inc, down 2.88% and Caterpillar Inc, off by 2.40%.

Daily Swing Chart Technical Analysis

The main trend is up according to the daily swing chart. A trade through 36446 will signal a resumption of the uptrend. A move through 33984 will change the main trend to down.

The minor trend is also up. Its trend will change to down on a move through 35383. This will also shift momentum to the downside.

The first minor range is 35383 to 36446. Its 50% level or pivot at 35915 is the nearest support.

The second minor range is 33984 to 36446. If the minor trend changes to down then look for a test of its pivot at 35215.

The main retracement zone support is 34915 to 34553. This is a value area so look for buyers on the first test of this zone.

Daily Swing Chart Technical Forecast

The direction of the December E-mini Dow into the close on Tuesday is likely to be determined by trader reaction to 36123.

Bullish Scenario

A sustained move over 36123 will indicate the presence of buyers. If this move can break in the buyers, we could see a retest of 36446 over the next 1-2 days. This price is a potential trigger point for an upside breakout.

Bearish Scenario

A sustained move under 36123 will signal the presence of sellers. If this move creates enough downside momentum then look for a drive into the pivot at 35915.

Since the main trend is up, buyers could come in on the first test of this level. Taking it out, however, with strong selling volume could trigger an acceleration into 35383, followed closely by 35215.