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E-mini Dow Jones Industrial Average (YM) Futures Technical Analysis – 27755 Pivot Controlling Today’s Direction

James Hyerczyk

December E-mini Dow Jones Industrial Average futures are trading lower shortly after the cash market opening. If the pre-market session is any indication then traders are in for a wild ride on Tuesday.

Earlier, in the pre-market session the Dow plunged on a report from the South China Morning Post that said China and the U.S. are unlikely to reach a trade deal this week. Shortly before the opening, however, the Dow rebounded enough to turn higher after The Wall Street Journal reported the U.S. plans to delay the implementation of additional tariffs on Chinese goods.

At 14:36 GMT, December E-mini Dow Jones Industrial Average futures are trading 27869, down 33 or -0.12%.

Daily December E-mini Dow Jones Industrial Average
Daily December E-mini Dow Jones Industrial Average

Daily Technical Analysis

The main trend is down according to the daily swing chart. 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. This will also shift momentum to the upside.

The short-term range is 28197 to 27312. Its 50% level or pivot at 27755 is support. It stopped the selling earlier in the session.

The second retracement zone support is 27522.

The main range is 26588 to 28197. Its retracement zone at 27392 to 27202 is a support area.

Daily Technical Forecast

Based on the early price action and the current price at 27869, the direction of the December E-mini Dow Jones Industrial Average the rest of the session on Tuesday is likely to be determined by trader reaction to the pivot at 27755.

Bullish Scenario

A sustained move over 27755 will indicate the presence of buyers. Overcoming and sustaining a mover over 27813 will indicate the buying is getting stronger. This could trigger a further rally into a cluster of levels at 27952, 28005 and 28047.

The last potential resistance angle before the 28197 main top comes in at 28101.

Bearish Scenario

A sustained move under 27755 will be a sign of weakness. The first target is 27632. This is a potential trigger point for an acceleration into 27522, followed closely by 27472 and 27392.

This article was originally posted on FX Empire