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E-mini Dow Jones Industrial Average (YM) Futures Analysis – Strengthens Over 25369, Weakens Under 25233

James Hyerczyk

E-mini Dow Jones Industrial Average futures are trading lower shortly after the pre-market opening. The average is still trading inside last Thursday’s range, suggesting investor indecision and impending volatility. At 2310 GMT, December E-mini Dow Jones Industrial Average futures are trading 25328, down 100 or -0.40%.

Daily December E-mini Dow Jones Industrial Average

Daily Swing Chart Technical Analysis

The main trend is down according to the daily swing chart. A trade through 24893 will signal a resumption of the downtrend.

If sellers take out 25217 then 25845 will become a new main top. If then occurs then buyers take out the main top, the main trend will change to up.

On the downside, the major support zone is 25233 to 24824. This zone stopped the selling on October 11 at 24893.

The short-term range is 24893 to 25845. Its 50% level or pivot is 25369.

Combining the major and the short-term 50% levels makes 25369 to 25233 a potential support area. Aggressive counter-trend buyers may come in on a test of this area in an effort to form a secondary higher bottom.

The main range is 26966 to 24893. Its retracement zone at 25930 to 26174 is the primary upside target.

Daily Swing Chart Technical Forecast

Based on Friday’s close at 25428, up 47 or +0.18%, the direction of December E-mini Dow Jones Industrial Average futures contract on Monday is likely to be determined by trader reaction to the short-term 50% level at 25369.

A sustained move under 25369 will indicate the presence of sellers. If this creates enough downside momentum then look for the break to continue into 25233 then 25217.

The low at 25217 is a potential trigger point for an acceleration to the downside with the next major downside targets coming in at 24893 and 24824.

A sustained move over 25369 will signal the presence of buyers. If buyers can build on this move then we could see an eventual move to 25845 then the main 50% level at 25930.

Basically, look for an upside bias to begin on a sustained move over 25369, and for a downside bias to begin on a sustained move under 25233.

This article was originally posted on FX Empire