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E-mini Dow Jones Industrial Average (YM) Futures Analysis – Strengthens Over 23324, Weakens Under 23156

By:
James Hyerczyk
Published: Dec 31, 2018, 18:37 UTC

Based on the early price action, the direction of the March E-mini Dow Jones Industrial Average the rest of the session is likely to be determined by trader reaction to the downtrending Gann angle at 23324.

E-mini Dow Jones Industrial Average

March E-mini Dow Jones Industrial Average futures are drifting higher on Monday. The market is trading inside Friday’s range which suggests investor indecision and impending volatility.  The tight trading range is a result of the extremely light volume ahead of Tuesday’s New Year’s Day holiday. Buyers are reacting to optimism over US – China trade relations. However, the on-going partial government shutdown may be helping to limit gains.

At 1833 GMT, March E-mini Dow Jones Industrial Average futures are trading at 23281, up 246 or +1.08%.

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. However, momentum has been trending higher since the formation of the closing price reversal bottom on December 26. A move through 23372 will indicate the buying is getting stronger.

A trade through 21452 will negate the closing price reversal bottom and signal a resumption of the downtrend.

The main range is 24860 to 21452. Its retracement zone at 23156 to 23558 is acting like resistance. Since the main trend is down, sellers came in on a test of this zone to stop the rally at 23372 on Friday.

The short-term range is 21452 to 23372. If there is a short-term retracement then look for a pullback into its 50% level at 22412. This is followed by a major 50% level at 22151.

Daily Technical Forecast

Based on the early price action, the direction of the March E-mini Dow Jones Industrial Average the rest of the session is likely to be determined by trader reaction to the downtrending Gann angle at 23324.

Bullish Scenario

Overtaking and sustaining a rally over 23324 will indicate the presence of buyers. If this creates enough upside momentum then look for the rally to extend into last week’s high at 23372, followed closely by the Fibonacci level at 23558. This is a potential trigger point for a surge into the next downtrending Gann angle at 23806.

Bearish Scenario

A sustained move under 23324 will signal the presence of sellers. The first downside target is the 50% level at 23156. This is followed closely by a steep uptrending Gann angle at 22988.

Look out to the downside if 22988 fails as support. This could trigger an acceleration to the downside with the next target the minor 50% level at 22412.

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.

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