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E-mini Dow Jones Industrial Average (YM) Futures Technical Analysis – Strengthens Over 26944, Weakens Under 26855

By:
James Hyerczyk
Published: Oct 16, 2019, 16:46 UTC

Based on the early price action, the direction of the December E-mini Dow Jones Industrial into Wednesday’s close is likely to be determined by trader reaction to a pair of Gann angles at 26885 and 26944.

E-mini Dow Jones Industrial Average Down

December E-mini Dow Jones Industrial Average futures are trading slightly lower at the mid-session on Wednesday in a lackluster trade as investor concerns over a number of issues offset a second day of better-than-expected earnings results.

Ahead of the cash market opening, the market was under pressure due to worries over Brexit and persistent trade war fears. Investors were also responding to an unexpected drop in retail sales in September.

For a second session, several major companies reported strong quarterly results including Bank of America, United Airlines and Bank of New York Mellon.

At 16:32 GMT, December E-mini Dow Jones Industrial Average futures are trading 26982, down 20 or -0.08%.

E-mini Dow Jones Industrial Average
Daily December E-mini Dow Jones Industrial Average

Daily Technical Analysis

The main trend is up. However, today’s inside move suggests investor indecision and impending volatility. The low volume and the lack of movement also indicates investors are looking for clarity.

A trade through 27079 will signal a resumption of the uptrend. The market is in no position to change the main trend to down, but there is room for a near-term correction.

The main range is 27312 to 25703. Its retracement zone at 26697 to 26508 is the nearest support zone.

Daily Technical Forecast

Based on the early price action, the direction of the December E-mini Dow Jones Industrial into Wednesday’s close is likely to be determined by trader reaction to a pair of Gann angles at 26885 and 26944.

Bullish Scenario

A sustained move over 26944 will indicate the presence of buyers. The first target is yesterday’s high at 27079. This is followed by the minor top at 27112 and the downtrending Gann angle at 27128.

Bearish Scenario

A sustained move under 26885 will signal the presence of sellers. This is a potential trigger point for an acceleration to the downside with the next target the main Fibonacci level at 26697.

About the Author

James is a Florida-based technical analyst, market researcher, educator and trader with 35+ years of experience. He is an expert in the area of patterns, price and time analysis as it applies to futures, Forex, and stocks.

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