December E-mini Dow Jones Industrial Average futures hit a fresh record high on Friday, buoyed by positive comments on U.S.-China trade relations from White House economic adviser Larry Kudlow on Thursday and U.S. Commerce Secretary Wilbur Ross on Friday.
On Thursday, Kudlow provided another ray of hope when he said negotiations over the first phase of a trade agreement with China were coming down to the final stages, with the two sides in close contact.
Speaking after an event at the Council on Foreign Relations late Thursday in Washington, Kudlow told reporters that a deal was close though “not done yet.”
“We are coming down to the short strokes,” Kudlow said. “We are in communication with them every day right now.”
Ross said in an interview on Fox Business Network on Friday that there was a very high probability the United States would reach a final agreement on a phase one trade deal with China.
“We’re down to the last details now,” Ross said.
At 21:15 GMT, December E-mini Dow Jones Industrial Average futures are trading 27948, up 202 or +0.73%.
Daily Technical Analysis
The main trend is up according to the daily swing chart. The uptrend was reaffirmed earlier on Friday when buyers took out Thursday’s high. The nearest main bottom is 25703 so the uptrend is safe for now.
The minor trend is also up. A trade through 27337 will change the minor trend to down. This will also shift momentum to the downside.
The first rolling minor range is 27337 to 27971. Its 50% level or pivot at 27654 is the first support. The second rolling minor range is 26847 to 27971. Its support level is 27409.
Daily Technical Forecast
The market is trading on the strong side of an uptrending Gann angle from the 25703 main bottom on October 3. This angle, moving up at a rate of 64 points per day comes in at 27687 on Friday.
Look for the uptrend to continue as long as the Dow futures contract holds above this angle. Crossing to the weak side of the angle will not mean the trend has changed, but it will indicate the selling is greater than the buying at current price levels.
Given the prolonged move up in terms of price and time and the fact that there is no resistance, the best sign that the selling is greater than the buying will be the formation of a closing price reversal top.
This article was originally posted on FX Empire
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