Yahoo Finanza E-mini Dow Jones Industrial Average (YM) Futures Technical Analysis – Weak Under 28025, Strong Over 28436
December E-mini Dow Jones Industrial Average futures finished nearly flat on Tuesday on growing optimism that talks among U.S. lawmakers are progressing with respect to a U.S. stimulus package aimed at cushioning the economic shock from the coronavirus pandemic.
House of Representatives Speaker Nancy Pelosi said she was optimistic Democrats could reach a deal with the White House that could get aid out of early next month. She added there should be an indication of a possible agreement later on Tuesday.
On Tuesday, December E-mini Jones Industrial Average futures settled at 28184, down 2 or -0.01%.
In other news, Dow component International Business Machines Corp (IBM) edged past estimates for quarterly revenue earlier in the week bolstered by higher demand for its cloud services. The company’s shares, however, fell 5.8% after it stayed away from issuing a current-quarter outlook, citing economic uncertainty related to the pandemic.
Daily Swing Chart Technical Analysis
The main trend is up according to the daily swing chart. A trade through 28846 will reaffirm the uptrend. The main trend will change to down on a move through 26407. This is highly unlikely but there is room to challenge a number of potential support levels.
The minor trend is also up. A trade through 28025 will change the minor trend to down. This will also shift momentum to the downside. The new minor top is 28732.
The minor range is 28846 to 28025. Its 50% level at 28436 is new resistance.
The intermediate range is 29050 to 26407. Its retracement zone at 28040 to 27729 is potential support. This area is also controlling the near-term direction of the Dow.
The short-term range is 26407 to 28846. Its retracement zone at 27627 to 27339 is another potential downside target.
Early Outlook
On Tuesday, sellers showed respect for the minor pivot at 28436 and buyers respected the Fibonacci level at 28040. Holding between these two levels will indicate investor indecision and impending volatility.
The chart pattern also suggests we’re in a news driven market. Good news about a stimulus package is likely to trigger a breakout over 28436, while bearish news will likely trigger a breakdown under 28040.
Taking out 28436 with conviction could trigger a breakout into the minor top at 28732 then the main top at 28846.
A violation of 28040 will indicate the selling is getting stronger, while taking out the minor bottom at 28025 could trigger an acceleration to the downside with potential targets a pair of 50% levels at 27729 and 27627.
For a look at all of today’s economic events, check out our economic calendar.
This article was originally posted on FX Empire
