E-mini Dow Jones Industrial Average (YM) Futures Technical Analysis – Straddling Pivot at 35737 on Low Volume

December E-mini Dow Jones industrial Average futures are trading higher at the mid-session on Monday, supported by the strong bank and oil company stocks.

Bank stocks rose on Monday after President Joe Biden picked Jerome Powell to continue to lead the Federal Reserve over Fed Governor Lael Brainard. Energy stocks were supported by a rise in crude oil on reports that OPEC+ could adjust plans to raise oil production if large consuming countries release crude from their reserves of if the coronavirus pandemic dampens demand.

At 18:23 GMT, December E-mini Dow Jones Industrial Average futures are trading 35766, up 217 or +0.61%.

Daily Swing Chart Technical Analysis

The main trend is down according to the daily swing chart. A trade through 35486 will signal a resumption of 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 35988 to 35486. The E-mini Dow is currently trading on the strong side of its pivot at 35737, making it support.

The short-term range is 36446 to 35486. Its 50% level at 35966 is a potential upside target. Since the main trend is down, look for sellers on a test of this level.

On the downside, the nearest support is a 50% level at 35215, followed by a retracement zone at 34915 – 34553.

Daily Swing Chart Technical Forecast

The direction of the December E-mini Dow Jones Industrial Average into the close is likely to be determined by trader reaction to 35737.

Bullish Scenario

A sustained move over 35737 will indicate the presence of buyers. If this move creates enough upside momentum then look for a surge into 35966, followed closely by 35988.

Taking out 35988 will shift momentum to the upside and could trigger an acceleration into the main top at 36238.

Bearish Scenario

A sustained move under 35737 will signal the presence of sellers. This could lead to a test of 35486.

Taking out 35486 could create the momentum needed to challenge the 50% level at 34915. Buyers could come in on the first test of this level, but if it fails then look for the selling to possibly extend into the value zone at 34915 – 34553.