Yahoo Finanza E-mini Dow Jones Industrial Average (YM) Futures Technical Analysis – Sustained Move Under 34214 is Bearish
December E-mini Dow Jones Industrial Average futures closed sharply lower after reversing earlier gains, on Wednesday after the Centers for Disease Control (CDC) and Prevention confirmed the first case of omicron coronavirus variant in the United States.
The E-mini Dow’s reversal came after the CDC reported the country’s first case of the new, heavily mutated coronavirus variant called omicron in California. Omicron – first detected last week in South Africa – has been reported in at least 23 countries, according to the World Health Organization.
On Wednesday, December E-mini Dow Jones Industrial Average futures settled at 34024, down 433 or -1.26%.
In stock related news, Salesforce.Com led the Dow lower with an 11.74% loss. This was followed by Boeing Co and Dow Inc, which lost 4.88% and 3.95% respectively.
Losses were somewhat offset by shares of Johnson & Johnson and Procter & Gamble, which gained 1.38% and 1.26%, respectively.
Daily Swing Chart Technical Analysis
The main trend is down according to the daily swing chart. The downtrend was reaffirmed late Wednesday when sellers took out the October 13 main bottom at 33984.
A trade through 36238 will change the main trend to up. This is highly unlikely, but since the E-mini Dow is down 10 sessions from this top, it is inside the window of time for a potentially bullish closing price reversal bottom.
The minor trend is also down. A trade through 35900 will change the minor trend to up. This will shift momentum to the downside.
The E-mini Dow also closed on the weak side of a long-term retracement zone at 34214 to 34641, making it resistance. A second resistance zone comes in at 34553 to 34915.
The combination of these two retracement zones creates a resistance cluster at 34553 to 34641.
Daily Swing Chart Technical Forecast
The direction of the December E-mini Dow Jones Industrial Average early Wednesday is likely to be determined by trader reaction to 34214.
Bearish Scenario
A sustained move under 34214 will indicate the presence of sellers. The first downside target is Wednesday’s low at 33928. This is a potential trigger point for an acceleration into the October 1 main bottom at 33383.
Bullish Scenario
A sustained move over 34214 will signal the presence of buyers. If this move creates enough upside momentum the look for a surge into the resistance cluster at 34553 to 34641. Since the main trend is down, sellers could come in on the first test of this area.
For a look at all of today’s economic events, check out our economic calendar.
This article was originally posted on FX Empire
