FXEMPIRE
All

E-mini Dow Jones Industrial Average (YM) Futures Technical Analysis – Strengthens Over 27859, Weakens Under 27755

Based on the early price action and the current price at 27879, the direction of the December E-mini Dow Jones Industrial Average the rest of the session on Friday is likely to be determined by trader reaction to the short-term Fibonacci level at 27859.
James Hyerczyk
E-mini Dow Jones Industrial Average

December E-mini Dow Jones Industrial Average futures are expected to open higher based on the pre-market trade. The catalysts behind the early strength are optimism over a U.S.-China trade deal and a better-than-expected jump in U.S. non-farm payrolls.

Although the headline number soundly beat expectations, traders have to realize that some of those gains can be attributed to the ending of the General Motors automaker strike. Furthermore, although the unemployment rate fell to 3.5%, average hourly earnings came in lower than expected.

At 14:27 GMT, December E-mini Dow Jones Industrial Average futures are trading 27879, up 202 or +0.73%.

With the jobs report out of the way, the focus will shift back to the trade deal. Bullish investors continue to hope that a deal will be reached before December 15. That’s the day new tariffs against China are expected to kick-in.

Daily December E-mini Dow Jones Industrial Average

Daily Technical Analysis

The main trend is down according to the daily swing chart. A trade through 28197 will change the main trend to up. A move through 27312 will signal a resumption of the downtrend.

The short-term range is 28197 to 27312. Its retracement zone at 27755 to 27859 is controlling the near-term direction of the Dow. Trading on the strong side of this zone will help generate an upside bias.

On the downside, the support levels are labored at 27510, 27380 and 27193.

Daily Technical Forecast

Based on the early price action and the current price at 27879, the direction of the December E-mini Dow Jones Industrial Average the rest of the session on Friday is likely to be determined by trader reaction to the short-term Fibonacci level at 27859.

Bullish Scenario

A sustained move over 27859 will indicate the presence of buyers. The first upside target is a downtrending Gann angle at 27941. Since the main trend is down, look for sellers on the first test of this angle.

Overtaking 27941 could trigger a further rally into downtrending Gann angles at 28069 and 28133. The latter is the last potential resistance angle before the 28197 main top.

Bearish Scenario

A sustained move under 27859 will signal the presence of sellers. This could trigger a break into the 50% level at 27755. This is a potential trigger point for an acceleration to the downside with the first target coming in at 27510.

Don't miss a thing!
Discover what's moving the markets. Sign up for a daily update delivered to your inbox

Latest Articles

See All

Expand Your Knowledge

See All
IMPORTANT DISCLAIMERS
The content provided on the website includes general news and publications, our personal analysis and opinions, and contents provided by third parties, which are intended for educational and research purposes only. It does not constitute, and should not be read as, any recommendation or advice to take any action whatsoever, including to make any investment or buy any product. When making any financial decision, you should perform your own due diligence checks, apply your own discretion and consult your competent advisors. The content of the website is not personally directed to you, and we does not take into account your financial situation or needs.The information contained in this website is not necessarily provided in real-time nor is it necessarily accurate. Prices provided herein may be provided by market makers and not by exchanges.Any trading or other financial decision you make shall be at your full responsibility, and you must not rely on any information provided through the website. FX Empire does not provide any warranty regarding any of the information contained in the website, and shall bear no responsibility for any trading losses you might incur as a result of using any information contained in the website.The website may include advertisements and other promotional contents, and FX Empire may receive compensation from third parties in connection with the content. FX Empire does not endorse any third party or recommends using any third party's services, and does not assume responsibility for your use of any such third party's website or services.FX Empire and its employees, officers, subsidiaries and associates, are not liable nor shall they be held liable for any loss or damage resulting from your use of the website or reliance on the information provided on this website.
RISK DISCLAIMER
This website includes information about cryptocurrencies, contracts for difference (CFDs) and other financial instruments, and about brokers, exchanges and other entities trading in such instruments. Both cryptocurrencies and CFDs are complex instruments and come with a high risk of losing money. You should carefully consider whether you understand how these instruments work and whether you can afford to take the high risk of losing your money.FX Empire encourages you to perform your own research before making any investment decision, and to avoid investing in any financial instrument which you do not fully understand how it works and what are the risks involved.
FOLLOW US