E-Mini Dow Faces Wall of Resistance between 34711 – 35380

March E-mini Dow Jones Industrial Average futures are trading higher shortly after the cash market opening as buyers returned following a strong earnings report from Microsoft. The price action suggests that today’s Federal Reserve rate hike announcements are already priced in, however, there are still some worries over tensions between Russia and Ukraine.

At 14:54 GMT, March E-mini Dow Jones Industrial Average futures are trading 34655, up 470 or +1.37%.

The futures market is being supported by a 2% jump in shares of Microsoft Corp as the tech giant forecast revenue for the current quarter broadly ahead of Wall Street targets. Shares of Dow component Apple is also giving the blue chip average a boost.

Additionally, Boeing is up about 2.1% after the aircraft maker reported positive cash flow for the first time since 2019, despite a $3.5 billion pre-tax charge on its 787 Dreamliner program.

Daily Swing Chart Technical Analysis

The main trend is down according to the daily swing chart. However, momentum is trending higher following the confirmation of Monday’s closing price reversal bottom.

A trade through 36390 will change the main trend to up. A move through 33031 will negate the closing price reversal bottom and signal a resumption of the downtrend.

On the upside, traders face a series of retracement level resistance at 34711, 34932, 35107 and 35380.

On the downside, the major support zone is 33461 to 32665. This area stopped the selling at 33031 on Monday.

Daily Swing Chart Technical Forecast

The direction of the March E-mini Dow into the close on Wednesday will be determined by trader reaction to 34711.

Bullish Scenario

A sustained move over 34711 will indicate the presence of buyers. If this move creates enough upside momentum then look for the buying to possibly extend into 34932, 35107 and 35380.

Since the main trend is down, look for sellers to re-emerge on a test of 34711 to 35380. Buyers are going to have to take out this area before we’ll see another breakout to the upside.

Bearish Scenario

A sustained move under 34711 will signal the presence of sellers. If this move creates enough downside momentum then look for a break into 33491.

Buyers could come in on the first test of 33491, but if it fails then look for the selling to possibly extend into 33461 and 33031.