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E-mini Dow Jones Industrial Average (YM) Futures Technical Analysis – Strong Over 34641, Weak Under 34553

(collapsable)→
Sun, 05 Dec 2021 14:33:00

December E-mini Dow Jones Industrial Average futures closed lower on Friday, weighed down by a mixed U.S. labor market report, fear of tighter Fed policy and uncertainty around the Omicron coronavirus variant. Due to its limited technology stock exposure, the market avoided a steep sell-off unlike the other broad-based indexes.

On Friday, December E-mini Dow Jones Industrial Average futures settled at 34566, down 56 or -0.16%.

Wall Street opened higher after the Labor Department’s report showed nonfarm payrolls increased less than expected in November, but the unemployment rate dropped to 4.2%, the lowest since February 2020, and wages increased further.

Daily December E-mini Dow Jones Industrial Average

Daily Swing Chart Technical Analysis

The main trend is down according to the daily swing chart. A trade through 33928 will signal a resumption of the downtrend.

A move through 36238 will change the main trend to up. This is highly unlikely, but due to the prolonged move up in terms of price and time, there is room for a normal 50% to 61.8% retracement of the current downtrend.

The minor trend is also down. A trade through 35900 will change the minor trend to up. This will shift momentum to the upside.

The main support zone is 34641 to 34214. The nearest resistance is a retracement zone at 34553 to 34915. These zones combine to form a price cluster at 34641 to 34553.

The E-mini Dow has been straddling this area for four sessions, suggesting traders may be forming a support zone inside 34915 to 34214.

The new minor range is 36446 to 33928. Its retracement zone at 35187 to 35484 is the primary upside target. Since the main trend is down, sellers could come in on a test of this area.

Daily Swing Chart Technical Forecast

The direction of the December E-mini Dow Jones Industrial Average early Monday is likely to be determined by trader reaction to 34641 and 34553.

Bullish Scenario

A sustained move over 34641 will indicate the presence of buyers. If this move creates enough upside momentum then look for a labored rally into a series of retracement levels at 34915, 35187 and 35484.

Bearish Scenario

A sustained move under 34553 will signal the presence of sellers. If this move generates enough downside momentum then look for the selling to possibly extend into the Fibonacci level at 34214, followed by last week’s low at 33928.

For a look at all of today’s economic events, check out our economic calendar.

This article was originally posted on FX Empire

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