E-mini Dow Jones Industrial Average (YM) Futures Technical Analysis – Sharp Break Puts 34915-34553 on Radar

December E-mini Dow Jones Industrial Average futures are down sharply late in the session on Friday. Fears of new lockdowns in Europe to curb the spread of COVID-19 drove investors out of banking, energy and hospitality stocks like airlines and hotels, and into technology shares.

At 19:42 GMT, December E-mini Dow Jones Industrial Average futures are trading 35542, down 269 or -0.75%.

Dow component Boeing Co is the worst performer with a 5.72% loss. This is followed by Merck & Co, down 2.55% and Chevron Corp, off by 2.27%. Nike and Apple bucked the trend by posting 2.4% and 1.67% gains respectively.

Daily Swing Chart Technical Analysis

The main trend is down according to the daily swing chart. A trade through the intraday low at 35486 will reaffirm the downtrend. A move through 36238 will change the main trend to up.

The minor trend is also down. A trade through 35988 will change the minor trend to up. This will also shift momentum to the upside.

The minor range is 36446 to 35486. Its 50% level at 35966 is the nearest resistance.

The short-term range is 33984 to 36446. Its 50% level at 35215 is the next downside target.

The main range is 33383 to 36446. Its retracement zone at 34915 – 34553 is a value zone and the best downside target. Look for buyers on a test of this area.

Daily Swing Chart Technical Forecast

The direction of the December E-mini Dow Jones Industrial Average into the close on Friday is likely to be determined by trader reaction to 35811.

Bearish Scenario

A sustained move under 35811 will indicate the presence of sellers. If this continues to generate enough downside momentum then look for a retest of the intraday low at 35486.

Taking out 35486 will indicate the selling pressure is getting stronger. This could fuel a break into 35383, followed by 35315. These are the last two potential support levels before the 34915 – 34553 retracement zone controlling the near-term direction of the market.

Bullish Scenario

A sustained move over 35811 will signal the presence of buyers. This could trigger a late session rally into 35966, followed by 35988. Taking out this level could trigger an acceleration into 36238.

Side Notes

If 34915 – 34553 is the value zone target then look for increasing downside momentum.