Yahoo Finance E-mini Dow Jones Industrial Average (YM) Futures Technical Analysis – Rangebound at Mid-Session on Low Holiday Volume
December E-mini Dow Jones Industrial Average futures are trading nearly flat at the mid-session as investors continue to digest Friday’s U.S.-China partial trade agreement and its significance, given mounting worries over its impact on the economy.
CNBC is reporting through a source that China wants to have additional trade talks before signing what President Donald Trump characterized Friday as a “very substantial phase one deal.” It is not clear if the additional talks will take place in Beijing or Washington, however. Bloomberg News first reported the news.
At 16:05 GMT, December E-mini Dow Jones Industrial Average futures are trading 26795, up 20 or +0.07%. This is down from an earlier high of 26894, and up from an earlier low of 26637.
Volume is well below average because of the U.S. Columbus Day holiday. The Treasury markets are closed as well as many banks. The low volume is affecting the price action by holding the market in a range.
Daily Technical Analysis
The main trend is up according to the daily swing chart. The trend turned up on Friday when buyers took out the 26615 main top. The main trend will change to down on a trade through 25983.
On Monday, the Dow is posting an inside move that tends to indicate investor indecision and impending volatility. The low holiday volume and the confusion over the trade deal are also keeping investors on the sidelines.
The short-term range is 27312 to 25703. Its retracement zone at 26697 to 26508 is support. This zone is also controlling the near-term direction of the Dow.
The major retracement zone support comes in at 26163 to 25892.
Daily Technical Forecast
Based on the early price action and the current price at 26795, the direction of the December E-mini Dow Jones Industrial Average futures contract into the close on Monday is likely to be determined by trader reaction to the short-term Fibonacci level at 26697.
Bullish Scenario
A sustained move over 26697 will indicate the presence of buyers. If big volume happens to return, we could see a surge into the downtrending Gann angle at 26976. Additional targets are minor tops at 27040 and 27112.
Bearish Scenario
A sustained move under 26697 will signal the presence of sellers. The first two targets are a downtrending Gann angle at 26640 and an uptrending Gann angle at 26599.
The latter is a potential trigger point for a break into the short-term 50% level at 26508.
This article was originally posted on FX Empire
