E-mini Dow Jones Industrial Average (YM) Futures Technical Analysis – Strengthens Over 27493, Weakens Under 27337

December E-mini Dow Jones Industrial Average futures are trading flat early Thursday after posting a slightly higher close the previous session. Profit-takers drove prices down early in the session, taking out Tuesday’s low, but buyers were able to more than recover those losses into the close. After hitting a record high earlier in the week, stocks have been struggling to sustain the upside momentum, as traders worried about U.S.-China trade negotiations.

At 06:20 GMT, December E-mini Dow Jones Industrial Average futures are trading 27433, up 3 or +0.01%.

Dow shares hit their session lows after reports said President Donald Trump and Chinese leader Xi Jinping likely won’t meet to sign a trade deal until December.

E-mini Dow Jones Industrial Average
Daily December E-mini Dow Jones Industrial Average

Daily Swing Chart Technical Analysis

The main trend is up according to the daily swing chart. A trade through 27493 will signal a resumption of the uptrend. A trade through 26588 will change the main trend to down. This is highly unlikely, but since the Dow is up 11 sessions from its last main bottom, it remains inside the window of time for a potentially bearish closing price reversal top.

The minor trend is also up. A trade through 26847 will change the minor trend to down. This will also shift momentum to the downside.

The first minor range is 26847 to 27493. Its 50% level or pivot at 27170 is the first downside target.

The short-term range is 26588 to 27493. Its 50% level at 27041 is the second downside target.

The third downside target is 26738 and the main retracement zone comes in at 26605 to 26394.

Daily Swing Chart Technical Forecast

Based on the price action this week and the current price at 27433, the direction of the December E-mini Dow Jones Industrial Average on Thursday is likely to be determined by trader reaction to the record close at 27430.

Bullish Scenario

A sustained move over 27430 will indicate the presence of buyers. If this creates enough upside momentum then look for the rally to possibly extend into the record high at 27493. This is a potential trigger point for an acceleration to the upside.

Bearish Scenario

A sustained move under 27430 will signal the presence of sellers. The first downside target is Wednesday’s low at 27337. Taking out this level will make 27493 a new main top. This may create the downside momentum needed to challenge the first minor pivot at 27170.

Look for a technical bounce on the first test of 27170, but if it fails then look for the selling to possibly extend into the next pivot at 27041.

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.