E-mini Dow Jones Industrial Average (YM) Futures Technical Analysis – 29129 May Be Trigger Pt for Steep Break

March E-mini Dow Jones Industrial Average futures are trading slightly lower shortly after the cash market opening after giving up all of its earlier gains. During the overnight session, buyers in Asia and Europe chased the futures contract to a new all-time high, but U.S. investors backed away from chasing the market higher.

At 14:42 GMT, March E-mini Dow Jones Industrial Average futures are trading 29229, down 12 or -0.04%. The high of the session is 29475.

Daily Technical Analysis

The main trend is up according to the daily swing chart. The uptrend was reaffirmed earlier in the session when buyers took out yesterday’s high. The main trend will change to down on a move through the nearest main bottom at 28105.

A change in trend is highly unlikely, but the Dow is in a position to post a potentially bearish closing price reversal top. This could trigger the start of a 2 to 3 day correction.

The short-term range is 28105 to 29475. Its retracement zone at 28790 to 28628 is the next potential downside target.

The main range is 27297 to 29475. Its retracement zone target comes in at 28330 to 28086. This zone is controlling the longer-term direction of the market.

Daily Technical Forecast

Based on the early price action and the current price at 29229, the direction of the March E-mini Dow Jones Industrial Average the rest of the session on Thursday is likely to be determined by trader reaction to yesterday’s close at 29241.

Bullish Scenario

A sustained move over 29241 will indicate the presence of buyers. If this produces enough upside momentum then look for a possible retest of today’s intraday high at 29475.

Bearish Scenario

A sustained move under 29241 will signal the presence of sellers. This will put the Dow in a position to form a closing price reversal top.

The first downside target is a steep uptrending Gann angle at 29129. This angle is a potential trigger point for an acceleration to the downside.

Side Notes

A close under 28241 will form a closing price reversal top. If confirmed, this could trigger the start of a 2 to 3 day correction. The first downside target would be the short-term 50% level at 28790.