E-mini Dow Jones Industrial Average (YM) Futures Technical Analysis – No True Resistance Until 29050

December E-mini Dow Jones Industrial Average futures are trading higher shortly after the opening on Thursday, but backing off from its earlier high. The early strength was fueled by comments from President Trump, who signaled progress in negotiations around new fiscal stimulus, while data showed jobless claims remained stubbornly high last week.

At 14:24 GMT, December E-mini Dow Jones Industrial Average futures are at 28304, up 125 or +0.44%.

Two days after calling off talks on a comprehensive fiscal aid bill, Trump said some discussions were ongoing with Democrats about boosting support for U.S. airlines and providing Americans with $1,200 stimulus checks.

In other news, a government report showed the number of Americans filing new claims for jobless benefits drifted lower last week but signaled the labor market still has a rocky road ahead.

Daily December E-mini Dow Jones Industrial Average

Daily Swing Chart Technical Analysis

The main trend is up according to the daily swing chart. The uptrend was reaffirmed when buyers took out yesterday’s high. The main trend is safe for now, but the market is still vulnerable to a closing price reversal top.

The minor trend is also up. A trade through 27531 will change the minor trend to down. This will also shift momentum to the downside.

The short-term range is 29050 to 26407. Its retracement zone at 28040 to 27729 is new support. Trading above this zone will continue to generate an upside bias.

The new minor range is 26407 to 28452. Its retracement zone at 27430 to 27188 is a new support zone.

Daily Swing Chart Technical Forecast

Based on the prolonged move up in terms of price and time, the direction of the December E-mini Dow Jones Industrial Average into the close is likely to be determined by trader reaction to yesterday’s close at 28179.

Bullish Scenario

A sustained move over 28179 will indicate the presence of buyers. If this is able to generate enough upside momentum then look for a retest of the intraday high at 28452. The daily chart indicates there is plenty of room to the upside with 29050 the next potential upside target so don’t be surprised by an acceleration to the upside.

Bearish Scenario

A sustained move under 28179 will signal the presence of sellers. This could trigger a break into 28040, but more importantly, it will put the Dow in a position to form a potentially bearish closing price reversal top.