December E-mini Dow Jones Industrial Average futures are trading higher shortly after the cash market after President Trump tweeted the U.S. is “Getting very close to a big deal with China. They want it, and so do we!”
Earlier in the session, selling pressure was being fueled by the uncertainty over a U.S.-China trade deal and whether the Trump administration will slap China with additional tariffs on December 15. Sellers were also reacting to a government report that showed weekly jobless claims jumped last week by 49,000 to 252,000, their highest level since the week-ending September 30, 2017.
At 14:42 GMT, December E-mini Dow Jones Industrial Average futures are trading 28044, up 120 or +0.43%.
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 short-term range is 28197 to 27312. Its 50% level at 27755 is support. This level has been controlling the direction of the index this week.
Another support level comes in at 27522, followed by a main support zone at 27392 to 27202.
Daily Technical Forecast
Based on the early price action and the current price at 28044, the direction of the December E-mini Dow Jones Industrial Average the rest of the session on Thursday is likely to be determined by trader reaction to the downtrending Gann angle at 28069.
A sustained move over 28069 will indicate the presence of buyers. The first upside target is the main top at 28197, followed by a steep uptrending Gann angle at 28208.
Crossing to the strong side of the angle at 28208 will put the December E-mini Dow Jones Industrial Average futures contract in an extremely bullish position.
A sustained move under 28069 will signal the presence of sellers. The first downside target comes in at 27941. If this fails as support then look for the selling to possibly extend into a support cluster at 27760 to 27755.
This article was originally posted on FX Empire
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