E-mini Dow Jones Industrial Average (YM) Futures Technical Analysis – Strengthens Over 34619, Weakens Under 34383

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December E-mini Dow Jones Industrial Average futures ended slightly lower on Friday after posting an inside trading range. The price action suggests investor indecision and impending volatility. Confusion over how to interpret the mixed U.S. Non-Farm Payrolls report likely kept many investors on the sidelines following the release of the data, leading to the tight trading range.

On Friday, December E-mini Dow Jones Industrial Average futures settled at 34626, down 12 or -0.03%.

The government’s jobs report missed on the headline number, but the unemployment rate fell to 4.8%, average hourly earnings were up and the Labor Department adjusted the previous month’s jobs higher. That appears to be enough for the Federal Reserve to begin tapering asset purchases this year.

Daily December E-mini Dow Jones Industrial Average

Daily Swing Chart Technical Analysis

The main trend is down according to the daily swing chart, however, momentum is trending higher. A trade through 34934 will change the main trend to up. A move through 33383 will signal a resumption of the downtrend.

The main range is 32835 to 35429. Its retracement zone at 34132 to 33826 is major support.

The short-term range is 35383 to 33383. The E-mini Dow closed slightly above its retracement zone at 34383 to 34619 on Friday, making it new support.

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 34619.

Bullish Scenario

A sustained move over 34619 will indicate the presence of buyers. If this move creates enough upside momentum then look for a surge into 34854.

Taking out 34854 will indicate the buying is getting stronger. This could lead to a test of the main top at 34934. Taking out this top will change the main trend to up. This could trigger an acceleration to the upside with the next minor target 35076, followed by the main targets at 35383 and 35429.

Bearish Scenario

A sustained move under 34619 will signal the presence of sellers. The first downside target is the 50% level at 34383.

A failure to hold 34383 could trigger the start of an acceleration into the main retracement zone at 34132 to 33826. Look for buyers on a test of this zone since it represents value.

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

This article was originally posted on FX Empire