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E-mini Dow Jones Industrial Average (YM) Futures Analysis – Into Close: Strengthens Over 24518, Weakens Under 24302

James Hyerczyk

December E-mini Dow Jones Industrial Average futures are trading sharply lower late Thursday, but trying to claw  back some of its losses. The selling pressure was fueled by renewed concerns over U.S.-China trade relations, the signaling of a potential U.S. economic slowdown and position-squaring ahead of Friday’s U.S. Non-Farm Payrolls report.

At 1922 GMT, December E-mini Dow Jones Industrial Average futures are trading 24566, down 480 or -1.88%.

Daily December E-mini Dow Jones Industrial Average

Daily Swing Chart Technical Analysis

The main trend is up according to the daily swing chart, however, momentum has been trending lower since the formation of the secondary lower top at 26088.

A trade through 24246 will change the main trend to down. Taking out 24086 will reaffirm the downtrend. A failure to hold the main bottom at 24000 will indicate the selling is getting stronger. This could trigger an acceleration to the downside with the next major targets the May 3 main bottom at 23580, followed by the April 4 main bottom at 23500.

Daily Swing Chart Technical Forecast

Based on the early price action and the current price at 24566, the direction of the December E-mini Dow Jones Industrial Average into the close is likely to be determined by trader reaction to the uptrending Gann angle at 24302.

Bullish Scenario

A sustained move over 24302 will indicate the presence of buyers. This could trigger a quick move into the next uptrending Gann angle at 24518. This price is the trigger point for an acceleration to the upside with the next target zone formed by a pair of Gann angles at 24950 to 25072.

Bearish Scenario

A sustained move under 24302 will signal the presence of sellers. This should create the downside momentum needed to take out the main bottom at 24246.

If 24246 fails as support then look for the selling to extend into the main bottoms at 24086 and 24000.

Taking out 24000 will indicate the selling is getting stronger. This is a trigger point for an acceleration into a pair of main bottoms at 23580 and 23500.

This article was originally posted on FX Empire

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