E-mini Dow Jones Industrial Average (YM) Futures Technical Analysis – Weakens Under 26663, Strengthens Over 26697

December E-mini Dow Jones Industrial Average futures are trading lower at the mid-session after erasing all of its earlier gains. Before the opening Microsoft reported earnings per share of $1.38 on revenue of $33.006 billion for the previous quarter, sending the stock 1.4% higher while adding 14 points to the index.

At 15:57 GMT, December E-mini Dow Jones Industrial Average futures are at 26763, down 39 or -0.15%.

The Dow fell from its high of 26872 after shares of 3M shaved nearly 50 points from the index. 3M cut its full-year earnings forecast, overshadowing stronger-than-expected results for the quarter.

Daily Technical Analysis

The main trend is up according to the daily swing chart, but momentum is trending lower. A trade through 27088 will signal a resumption of the uptrend. The Dow is in no position to change the trend to down, but there is room for a normal correction.

The minor trend is down. This is controlling the downside momentum. A trade through 26904 will change the minor trend to up, shifting momentum to the upside. A trade through the minor bottom at 26588 will indicate the selling pressure is getting stronger.

The short-term range is 27088 to 26588. Its retracement zone at 26838 to 26897 is resistance. This zone stopped the rally earlier in the session at 26872.

The main range 27312 to 25703. Its retracement zone at 26697 to 26508 is support. This zone stopped the selling on Wednesday at 26588.

Daily Technical Forecast

Based on the early price action and the current price at 26763, the direction of the December E-mini Dow Jones Industrial Average into the close on Thursday is likely to be determined by trader reaction to the uptrending Gann angle at 26663.

Bullish Scenario

A sustained move over 26663 will indicate that buyers are coming in. Overcoming 26697 will indicate the buying is getting stronger. This could trigger an acceleration to the upside with the first target a resistance cluster at 26838 to 26848.

Overcoming 26848 could trigger a move into 26897, 26904 and a downtrending Gann angle at 26928. This is a potential trigger point for an acceleration into another downtrending Gann angle at 27008.

Bearish Scenario

A sustained move under 26663 will signal the presence of sellers. This could trigger a break into 26588, followed by the 50% level at 26508. This is a potential trigger point for an acceleration to the downside with the next target angle coming in at 26384.

Crossing to the weak side of the angle at 26384 could trigger a further break into an uptrending Gann angle at 26183, followed by a 50% level at 26163.