E-mini Dow Jones Industrial Average

E-mini Dow Jones Industrial Average (YM) Futures Analysis – Plenty of Room to Downside Under 24824

December E-mini Dow Jones Industrial Average futures are expected to open lower based on the pre-market trade. Although the blue chip average opened higher, it plunged shortly after the opening, taking out Tuesday’s low and a pair of Fibonacci levels in the process. The spike to the downside was caused by the arrest of the CFO of Huawei, a Chinese corporation, by Canadian authorities. Traders are saying the arrest raises concerns over U.S.-China trade negotiations.

At 0850 GMT, December E-mini Dow Jones Industrial Average futures are trading 24739, down 307 or -1.23%.

E-mini NASDAQ-100 Index
Daily December E-mini NASDAQ-100 Index

Daily Swing Chart Technical Analysis

The main trend is up according to the daily swing chart, but momentum is trending lower with the formation of the secondary lower top at 26088. A trade through 24246 will change the main trend to down. A move through 26088 will signal a resumption of the uptrend.

The Dow is also trading below a series of retracement levels, which is helping to give it a downside bias. This levels are new resistance. They include a pair of Fibonacci levels at 24824 and 24950 and a pair of 50% levels at 25167 to 25233.

Daily Swing Chart Technical Forecast

Based on the earlier price action and the current price at 24739, the direction of the December E-mini Dow Jones Industrial Average the rest of the session is likely to be determined by trader reaction to the Fibonacci level at 24824.

Bullish Scenario

Overtaking and holding above 24824 will indicate the presence of buyers. This could lead to a quick test of 24950. A move over this level will indicate the buying is getting stronger with targets at 25167 to 25233.

The daily chart starts to open up to the upside over 25233 with the retracement zone at 25526 to 25866 the next major upside target.

Bearish Scenario

A sustained move under 24824 will indicate the presence of sellers. If this move generates enough momentum then look for an acceleration to the downside. The next major target is the main bottom at 24246, followed by additional main bottoms at 24086 and 24000.

The trigger point for another acceleration to the downside is 24000. In this case, 23580 and 23500 will become the primary downside targets.

Published by

James Hyerczyk

James A. Hyerczyk has worked as a fundamental and technical financial market analyst since 1982. His technical work features the pattern, price and time analysis techniques of W.D. Gann.