December E-mini Dow Jones Industrial Average futures are expected to open higher based on the pre-market trade. The market is being supported by strong earnings and optimism over tax reform.
Trading conditions are thin so I don’t know how much of the buying is real especially with many of the major players on the sidelines. Volume should taper off as we approach Wednesday, the day before the U.S. Thanksgiving holiday. This may lead to profit-taking and position-squaring and it’s possible that all of this week’s gains will be erased.
Daily Technical Analysis
The main trend is up according to the daily swing chart. A trade through 23557 will signal a resumption of the uptrend.
The short-term range is 23357 to 23205. The market is currently trading on the strong side of its pivot at 23381. This is helping with today’s upside bias.
Daily Technical Forecast
Based on the early trade, the best support is the pivot at 23381.
The upside targets are a price cluster at 23477 to 23487, followed by a downtrending angle at 23517. This price is the last potential resistance angle before the 23557 main top.
A sustained move under the downtrending angle at 23477 will be the first sign of weakness with the next target, a downtrending angle at 23397, followed by the pivot at 23381.
The daily chart opens up to the downside under 23381 so don’t be surprised by an acceleration to the downside with 23254 the next target.
We could chop around between 23557 and 23381. However, look for a strong upside bias on a sustained move over 23557 and for a downside bias to develop on a sustained move under 23381.
This article was originally posted on FX Empire