Advertisement
Advertisement

E-mini Dow Jones Industrial Average (YM) Futures Analysis – February 20, 2018 Forecast

By:
James Hyerczyk
Published: Feb 20, 2018, 14:21 UTC

Based on the early trade, the direction of the Dow is likely to be determined by trader reaction to the 50% level at 24886.

E-mini Dow Jones Industrial Average

March E-mini Dow Jones Industrial Average futures are trading lower shortly before the cash market opening. The market is being pressured by disappointing earnings from Walmart and Home Depot as well as position-squaring ahead of the release of the Fed meeting minutes on Wednesday. Rising interest rates are also weighing on stock prices.

E-mini Dow Jones Industrial Average
Daily March E-mini Dow Jones Industrial Average

Daily Technical Analysis

The main trend is down according to the daily swing chart. A trade through 25424 will change the main trend to up.

The main range is 26684 to 23088. Its retracement zone at 24886 to 25310 is currently being tested. This zone is controlling the near-term direction of the Down.

The short-term range is 23088 to 25424. If the selling pressure increases then its retracement zone at 24256 to 23980 will become the primary downside target.

Daily Technical Forecast

Based on the early trade, the direction of the Dow is likely to be determined by trader reaction to the 50% level at 24886.

Holding above 24886 will indicate that buyers are coming in to defend against a breakdown. If this creates enough upside momentum then look for a retest of the Fibonacci level at 25310.

Overtaking 25310 will indicate the buying is getting stronger. Taking out 25424 will change the main trend to up. This could drive the Dow into a Gann angle resistance cluster at 25648 to 25660. Watch for a technical bounce on the first test of this zone and an acceleration to the upside if buyers can take out 25660.

If 24886 fails as support and the selling volume increases on the move then look for a drive into a downtrending Gann angle at 24636. Crossing to the weak side of this angle will indicate the selling is getting stronger with the next targets an uptrending Gann angle at 24368 and the retracement zone at 24256 to 23980.

About the Author

James is a Florida-based technical analyst, market researcher, educator and trader with 35+ years of experience. He is an expert in the area of patterns, price and time analysis as it applies to futures, Forex, and stocks.

Did you find this article useful?

Advertisement