E-mini Dow Jones Industrial Average (YM) Futures Technical Analysis – 27627 Major 50% Level; Watch for Bounce

March E-mini Dow Jones Industrial Average futures are trading lower shortly after the cash market after giving back earlier gains. Bargain-hunters, hoping to catch a strong rebound rally after yesterday’s steep decline, were hit with a dose of reality on lingering concerns over the economic impact of the coronavirus on the U.S. economy. After the initial emergence of sellers, the market was hit a little harder following the release of a not-so-impressive Conference Board Consumer Confidence report.

At 15:53 GMT, March E-mini Dow Jones Industrial Average futures are trading 27648, down 320 or -1.14%.

Daily Technical Analysis

The main trend is down according to the daily swing chart. The next main bottom target comes in at 27297, followed by 26592.

The main trend will change to up on a move through 29543. However, this is highly unlikely. The Dow is also down seven sessions from its last main top which puts it inside the window of time for a potentially bullish closing price reversal bottom. A close over 27968 will create the reversal.

The main range is 25710 to 29543. Its retracement zone at 27627 to 27174 is the primary downside target. Watch for a technical bounce, following a test of this zone.

Daily Technical Forecast

Earlier today, the March E-mini Dow Jones Industrial Average reached a low of 27628, just one point above out first objective of 27627. This was followed by a fast technical bounce. All this does is validate the importance of the 50% level at 27627.

Based on the early price action and the current price at 27648, the direction of the March E-mini Dow Jones Industrial Average the rest of the session on Tuesday is likely to be determined by trader reaction to the main 50% level at 27627.

Bearish Scenario

A sustained move under 27627 will indicate the presence of sellers. This could trigger a break into the uptrending Gann angle at 27274, followed closely by the main Fibonacci level at 27174. Besides being potential support, this angle is also a potential trigger point for an acceleration to the downside with the next target angle coming in at 26491.

Bullish Scenario

A sustained move over 27627 will signal the presence of buyers. This will also mean that buyers are defending the main retracement zone.

The first upside target is yesterday’s close at 27968. Turning higher for the session will put the Dow in a position to post a potentially bullish closing price reversal bottom.