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E-mini Dow Jones Industrial Average (YM) Futures Technical Analysis – Guided Higher by Uptrending Gann Angle at 27367

James Hyerczyk

December E-mini Dow Jones Industrial Average futures are trading lower shortly before the cash market close. Unless there is a last hour surge in the cash Dow, the Dow futures are likely to finish lower for the day, bringing an end to its five-day winning streak. However, it is still in a position to settle higher for the week.

At 20:31 GMT, December E-mini Dow Jones Industrial Average futures are at 27627, down 39 or -0.14%.

The market is also posting an inside day on Friday, which suggests investor indecision and impending volatility. The indecision is likely being caused by the lack of progress in U.S.-China trade talks, particular when and where a trade deal will be signed. The indecision is likely capping gains, while the rolling back of future tariffs by the two economic powerhouses is likely providing support.

Daily December E-mini Dow Jones Industrial Average

Daily Technical Analysis

The main trend is up according to the daily swing chart. A trade through 27739 will signal a resumption of the uptrend. The main trend will change to down on a trade through 26588. This is highly unlikely, but the prolonged move up in terms of price and time have put the Dow inside the window of time for a potentially bearish closing price reversal top.

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 minor range is 27337 to 27739. Its 50% level or pivot at 27538 is the first potential support.

The second minor range is 26847 to 27739. Its 50% level or pivot at 27293 is the next potential support level.

The major support is the uptrending Gann angle at 27367. This angle, moving at a rate of 64 points per day from the 25703 main bottom on October 3, has been guiding the market higher for 26 trading days. Look for the start of a steep sell-off if this angle fails as support.

Daily Technical Forecast

The December E-mini Dow Jones Industrial Average futures contract is in no position to post a daily close price reversal top, but a close under the pivot at 27538 will be a sign of weakness. This move won’t change the trend either, but it will indicate the selling is greater than the buying at current price levels.

This article was originally posted on FX Empire

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