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E-mini Dow Jones Industrial Average (YM) Futures Technical Analysis – Could Strengthen Over 27522, Weaken Under 27393

James Hyerczyk

December E-mini Dow Jones Industrial Average futures are edging lower early Wednesday. The inside trading range suggests investor indecision and impending volatility. The market is being pressured by lower demand for risky assets due to renewed concerns over a U.S.-China trade deal. Monday’s weaker-than-expected ISM US Manufacturing PMI data is also weighing on the market.

At 08:24 GMT, December E-mini Dow Jones Industrial Average futures are at 27436, down 51 or -0.19%.

Later today, investors will get the opportunity to react to the ADP Non-Farm Employment Change and ISM Non-Manufacturing PMI.

Daily December E-mini Dow Jones Industrial Average

Daily Swing Chart Technical Analysis

The main trend is down according to the daily swing chart. The main trend turned down on Tuesday when sellers took out the last main bottom at 27643. A trade through 28197 will change the main trend to up.

The minor range is 26847 to 28197. Its 50% level at 27522 is currently being tested as resistance.

The first main range is 26588 to 28197. Its 50% level at 27090 is currently being tested as support.

The second main range is 25983 to 28197. Its 50% level is 27090.

The third main range is 25703 to 28197. Its retracement zone at 26950 to 26656 is major support and a value zone. Buyers could come in on a test of this zone.

Daily Swing Chart Technical Forecast

Based on the early price action and the current price at 27436, the direction of the December E-mini Dow Jones Industrial Average the rest of the session on Wednesday is likely to be determined by trader reaction to the 50% levels 27522 and 27393.

Bullish Scenario

A sustained move over 27522 will indicate the presence of buyers. If this creates enough upside momentum then look for a potential rally into a minor 50% level at 27754. Since the main trend is down, sellers could come in on a test of this level. They are going to try to form a secondary lower top.

Bearish Scenario

A sustained move under 27393 will signal the presence of sellers. Taking out yesterday’s low at 27312 will indicate the selling is getting stronger. This could trigger an acceleration to the downside with targets coming in at 27090 and 26950.

This article was originally posted on FX Empire

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