E-mini Dow Jones Industrial Average (YM) Futures Technical Analysis – Close Under 24996 Forms Bearish Weekly Closing Price Reversal Top

Based on the early price action, the direction of the March E-mini Dow Jones Industrial Average futures contract the rest of the session is likely to be determined by trader reaction to the major Fibonacci level at 24890.
James Hyerczyk
E-mini Dow Jones Industrial Average

March E-mini Dow Jones Industrial Average futures are breaking sharply for a second day in reaction to renewed concerns over U.S.-China trade negotiations as well as slowing global economic growth. Fear is creeping into the markets with many investors seeking shelter in safe-haven assets. Buyers are scare as investors take on more defensive positions.

At 16:16 GMT, March E-mini Dow Jones Industrial Average futures are trading 24908, down 223 or -0.88%.

A close under 24996 forms a weekly closing price reversal top. This could trigger the start of a 2 to 3 week correction.

Daily March E-mini Dow Jones Industrial Average

Daily Swing Chart Technical Analysis

The main trend is up according to the daily swing chart, however, momentum is trending lower. A new main top was formed at 25387. A trade through this level will signal a resumption of the uptrend.

The minor trend is down. It changed to down earlier in the session when sellers took out 24924. This shifted momentum to the downside. The next minor bottom targets are 24284 and 24216.

The major retracement zone is 24890 to 24234. This zone is controlling the longer-term direction of the market.

The minor range is 24216 to 25387. Its retracement zone at 24802 to 24663 is the first downside target.

Daily Swing Chart Technical Forecast

Based on the early price action, the direction of the March E-mini Dow Jones Industrial Average futures contract the rest of the session is likely to be determined by trader reaction to the major Fibonacci level at 24890.

Bullish Scenario

A sustained move over 24890 will indicate the return of buyers. If this generates enough upside momentum then we could see a retracement into 25129.

Bearish Scenario

A sustained move under 24890 will signal the presence of sellers. This could trigger a fast break into the short-term 50% level at 24802. If this fails then look for the selling pressure to extend into the short-term Fibonacci level at 24663.

The Fib level at 24663 is the most important level on the charts. This is a potential trigger point for an acceleration to the downside with the next major targets coming in at 24284, 24234 and 24216.

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