E-mini Dow Jones Industrial Average (YM) Futures Technical Analysis – February 12, 2019 Forecast

March E-mini Dow Jones Industrial Average futures are trading sharply higher at the mid-session on Tuesday, led by strong responses in shares of Caterpillar and Intel. There are two catalysts driving the price action today. The first is the news that congressional negotiators struck a deal in principle that would keep the government open and avoid a shutdown on Friday. The second is improved prospects for a U.S.-China trade deal.

At 1734 GMT, March E-mini Dow Jones Industrial Average futures are trading 25361, up 344 or +1.38%.

Daily Swing Chart Technical Analysis

The main trend is up according to the daily swing chart. A trade through 25387 will signal a resumption of the uptrend. A new main bottom was created at 24862. A trade through this level will change the main trend to down.

The short-term range is 25387 to 24862. The Dow is currently trading on the strong side of its 50% level or pivot at 25125.

The index is also trading on the strong side of a long-term retracement zone at 24890 to 24234. Holding above this zone will put the index in a bullish position. This zone remains the major support.

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 trade reaction to the main top at 25387.

Bullish Scenario

Taking out the main top at 25387 and sustaining the rally will indicate the presence of buyers. The daily chart shows that this price could be the launch site for an eventual rally into the December 3 main top at 26110.

Bearish Scenario

The inability to overcome 25387 or sustain a rally over this level will signal the presence of sellers. This could trigger a break into the minor 50% level or pivot at 25125. Buyers could come in on the first test of this level. If it fails then look for the selling to possibly extend into the major Fibonacci level at 24890. Taking out the main bottom at 24862 will change the main trend to down.