E-mini Dow Jones Industrial Average (YM) Futures Technical Analysis – Close Under 28770 Forms Reversal Top

March E-mini Dow Jones Industrial Average futures are grinding higher on Thursday in the wake of an easing of tensions between the United States and Iran, and a surge in technology stocks, led by Apple.

The Dow hit a record high, driven by increasing demand for risky assets. Apple shares jumped 2% to a record high after Chinese government data showed that iPhone sales rose 18% in December in the country.

At 16:52 GMT, March E-mini Dow Jones Industrial Average futures are at 28944, up 174 or +0.60%.

Daily Technical Analysis

The main trend is up according to the daily swing chart. The uptrend was reaffirmed when buyers took out the previous main top at 28893.

The main trend will change to down on a move through 28084. This is not likely, however, we could see a closing price reversal top if the rally fails to attract enough buyers to sustain the rally.

The short-term range is 28084 to 28936. This creates rolling retracement zone support at 28510 to 28409. Rolling means the zone will keep changing as the market rallies. So keep adjusting the figures.

The next support zone is 28325 to 28181, followed by 28117 to 27923. An uptrending Gann angle comes in at 28355.

Daily Technical Forecast

Based on the early price action and the current price at 28944, 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 the uptrending Gann angle at 28897.

Bullish Scenario

A sustained move over 28897 will indicate the buying is getting stronger. The next uptrending Gann angle comes in at 28995.

Crossing to the strong side of the angle at 28995 and sustaining the move will put the Dow in an extremely bullish position.

Bearish Scenario

A sustained move under 28897 will signal the return of sellers. The selling pressure could increase if the Dow turns lower for the session. This could trigger a potential acceleration to the downside with the next target coming in at 28510.

Side Notes

A close under 28770 will produce a closing price reversal top. If confirmed, this could trigger the start of a 2 to 3 day correction.