E-mini Dow Jones Industrial Average (YM) Futures Technical Analysis – 27627 – 27174 Next Major Target

March E-mini Dow Jones Industrial Average futures are expected to open down sharply on Monday after gapping lower on the opening. The selling pressure is being fueled by spikes in coronavirus cases in several countries outside China, which deepened worries about a hit to global economic growth, prompting a flight into safe-haven assets.

At 12:07 GMT, March E-mini Dow Jones Industrial Average futures are trading 28285, down 696 or -2.40%. The pre-market session low is 28122.

Daily Technical Analysis

The main trend is down according to the daily swing chart. It turned down late last week. The next two downside targets are swing bottoms at 28105 and 28084. These are followed by another swing bottom at 27297.

The short-term range is 28105 to 29543. Its retracement zone at 28654 to 28824 is the nearest resistance zone.

The main range is 25710 to 29543. Its retracement zone at 27627 to 27174 is the primary downside target. This zone represents value so buyers could step in when it’s tested.

Daily Technical Forecast

Based on the early price action, the low at 28122 and the last price at 28285, the direction of the March E-mini Dow Jones Industrial Average the rest of the session on Monday is likely to be determined by trader reaction to the main bottom at 28105.

Bearish Scenario

A trade through 28105 will reaffirm the downtrend. This should trigger a quick break into the next main bottom at 28084.

Taking out 28084 will indicate the selling is getting stronger. This could trigger a break into the main 50% level at 27627. Watch for a technical bounce on the first test of this level.

If 27627 fails as support then look for the selling to possibly extend into a long-term uptrending Gann angle at 27259, followed by the Fibonacci level at 27174. Buyers could step in on a test of these levels.

Bullish Scenario

The inability to take out 28105 will signal the presence of buyers. If this move is able to create enough upside momentum then look for the rally to possibly extend into the short-term Fibonacci level at 28654, followed by a steep downtrending Gann angle at 28775.