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E-mini Dow Jones Industrial Average (YM) Futures Technical Analysis – Early Look Shows Market Holding Weekly Pivot at 27887

James Hyerczyk

December E-mini Dow Jones Industrial Average futures are inching higher early Wednesday as investors continue to digest the impact of Wednesday’s Fed decisions. To a lesser extent, investors are monitoring the outcome of the U.K. Brexit elections. However, to a greater extent, the major concern remains whether the U.S. will impose fresh tariffs on Chinese imports on December 15.

At 08:05 GMT, December E-mini Dow Jones Industrial Average futures are trading 27958, up 34 or +0.12%.

Helping to underpin the Dow is the news that the U.S. Federal Reserve kept interest rates unchanged on Wednesday and that policymakers do not expect any policy changes through at least 2020.

Putting a lid on prices is whether the U.S. will slap China with additional tariffs on Sunday. Later today, President Trump is expected to meet with top trade advisors to discuss this matter, three sources familiar with the plans said, according to Reuters, as markets braced for potential negative impacts.

Daily Swing Chart Technical Analysis

The main trend is down according to the daily swing chart, however, momentum is trending slightly higher. A trade through 28197 will change the main trend to up. A move through 27312 will signal a resumption of the downtrend.

The minor trend is also down. A trade through 28047 will change the minor trend to up and signal a shift in momentum to the upside. A trade through the minor bottom at 27726 will signal increased selling pressure.

The first short-term range is 28197 to 27312. Its 50% level or pivot at 27755 is support. It’s also controlling the near-term direction of the Dow.

The second short-term range is 26847 to 28197. Its 50% level at 27522 is additional support.

The third minor range is 26588 to 28197. Its 50% level at 27393 is another support level. This one essentially stopped the selling last week at 27312.

Daily Swing Chart Early Forecast

A minor range has formed this week between 28047 and 27726. Trader reaction to these levels is likely to determine the direction of the Dow on Thursday.

An upside bias could build on a sustained move over 28047. A downside bias is likely to build on a sustained move under 27726.

Trading between 28047 and 27726 is likely to produce a choppy, two-sided trade.

Side Notes

The range for the week is 28047 to 27726. Its 50% level is 27887. Aggressive traders may want to use this level as guidance.

This article was originally posted on FX Empire

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