December E-mini Dow Jones Industrial Average futures are trading higher shortly before the cash market opening on Monday. The blue chip average is being helped by a recovery in shares of major component Apple Inc, which lead the plunge on Friday.
Investors could also be betting on relief from the recent surge in COVID-19 cases. According to the latest reports, the seven-day average of new U.S. COVID cases has fallen 27% from the recent September 2 peak, raising hopes that the Delta Variant Wave has crested.
At 10:52 GMT, December E-mini Dow Jones Industrial Average futures are trading 34718, up 227 or +0.66%.
During the premarket session, shares of Apple Inc are trading $150.40, up 1.43 or +0.96%. On Friday, the stock sold off sharply, dragging the Dow with it after a federal judge ruled that Apple must allow external payments for app developers such as Epic Games, creator of the popular online game Fortnite.
Daily Swing Chart Technical Analysis
The main trend is down according to the daily swing chart. A trade through 34400 will reaffirm the downtrend. A move through 35383 will change the main trend to up.
The minor trend is also down. A trade through 35076 will change the minor trend to up. This will also shift momentum to the upside.
The main range is 33533 to 35429. Its retracement zone at 34481 to 34257 is the primary downside target. This zone also represent value. Buyers came in on Friday at 34481 to stop the four day price slide.
On the upside, the first target is the minor 50% level at 34779. This is followed by a minor retracement zone at 34932 to 35038.
Daily Swing Chart Technical Forecast
The direction of the December E-mini Dow Jones Industrial Average on Monday is likely to be determined by trader reaction to 34481.
A sustained move over 34481 will indicate the presence of buyers. If this move generates enough upside momentum then look for a rally into the minor pivot at 34779. Since the main trend is down, sellers could come in on a test of this level.
Overtaking 34779 will indicate the buying is getting stronger. This could trigger a surge into the next minor retracement zone at 34932 to 35038.00.
A failure to overcome 34779 will signal the return of sellers. Taking out 34481 will indicate the selling pressure is getting stronger. This could lead to a quick test of the main bottom at 34400, followed by the main Fibonacci level at 34257.