E-mini Dow Jones Industrial Average (YM) Futures Technical Analysis – Stronger Over 35807, Weaker Under 35713

December E-mini Dow Jones Industrial Average futures closed sharply higher on Tuesday, led by major advances in components Apple and Intel.

Tech giant Apple jumped 3.54% after Morgan Stanley’s Katy Huberty raised Apple’s price target from $164 to $200 and maintained an overweight rating. The analyst believes that new products from Apple, like an augmented reality headset or self-driving car, aren’t yet baked into the share price.

Intel shares rose 3.1% after the chipmaker announced plans to take its self-driving car unit public in mid-2022. The company acquired Israeli autonomous driving firm Mobileye in 2017.

On Tuesday, December E-mini Dow Jones Industrial Average futures settled at 35713, up 501 or +1.40%.

Optimistic comments from a top U.S. official about the nature of the Omicron variant and positive data on a COVID-19 drug’s efficacy against the latest variant also boosted investors’ sentiment.

Daily Swing Chart Technical Analysis

The main trend is down according to the daily swing chart. A trade through 36238 will change the main trend to up. A move through 33928 will signal a resumption of the downtrend.

The minor trend is also down. A trade through 35900 will change the minor trend to up. This will shift momentum to the upside.

The short-term range is 36446 to 33928. The market is currently trading on the strong side of its retracement zone at 35484 to 35187, making it potential support.

The intermediate range is 33383 to 36446. Its retracement zone at 34915 to 34553 is additional support. The main support is 34641 to 34214. The combination of these two zone creates a support cluster at 34641 to 34553.

Daily Swing Chart Technical Forecast

The direction of the December E-mini Dow Jones Industrial Average early Wednesday is likely to be determined by trader reaction to 35713.

Bullish Scenario

A sustained move over 35713 will indicate the presence of buyers. Taking out yesterday’s high at 35807 will indicate the buying is getting stronger, while a move through the pair of minor tops at 35900 and 35988 shifts momentum to the upside.

Overcoming 35988 could create the upside momentum needed to challenge the main top at 36238 and the all-time high at 36446.

Bearish Scenario

A sustained move under 35713 will signal the presence of sellers. If this generates enough downside momentum then look for the selling to possibly extend into the Fibonacci level at 35484.

If 35484 fails then look for the selling to continue into the 50% level at 35187. A trade through this level will turn the E-mini Dow lower for the week.