Credit: Shutterstock photoDecember Dow Jones Industrial Average futures are called higher based on the pre-market trade. The price action suggests investors are shrugging off geopolitical concerns and focusing their efforts on monetary policy and tax reform.
Daily Technical Analysis
The main trend is up according to the daily swing. There is no resistance, but the index is in the window of time for a potentially bearish closing price reversal top. This chart pattern will not mean the trend is preparing to turn to down, but it will indicate that the selling is greater than the buying at current price levels.
The nearest support is the former main top at 22089. A break back under this level will also indicate strong selling pressure, but not a change in the trend.
Daily Forecast
The upside momentum is very strong. The nearest uptrending Gann angle is 22387. Crossing to the strong side of this angle moving up at a rate of 64 points per day from the 21555 main bottom will put the Dow in an extremely bullish position.
Watch the price action and read the order flow at each new higher. If the momentum is beginning to slow, we'll probably see it on the intraday chart first. It usually comes in the form of an intraday, higher-high, lower-close or an "M" top formation. Otherwise, enjoy the ride.
This article was originally posted on FX Empire
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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
