E-mini Dow Jones Industrial Average (YM) Futures Technical Analysis – February 21, 2019 Forecast

March E-mini Dow Jones Industrial Average futures are trading higher on Thursday, however it has given back almost all of its earlier gains. The market rallied earlier in the session on the back of the dovish Fed minutes and news that the U.S.-China are inching closer to a trade deal. However, prices started to retreat in reaction to a mixed performance in Europe.

At 10:39 GMT, March E-mini Dow Jones Industrial Average futures are trading 25982, up 18 or +0.07%. Earlier in the session, the market hit a high of 26082.

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. Sellers came in as the market approached the December 3 top at 26110. A trade through 25275 will change the main trend to down.

Daily 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 day is likely to be determined by trader reaction to the steep uptrending Gann angle at 26043.

Bullish Scenario

A sustained move over 26043 will indicate the presence of buyers. The next target is 26110. Taking out this level with conviction could trigger an acceleration to the upside with the November 8 main top at 26300 the next major upside target.

The main top at 26300 is even a better trigger point for an acceleration. The daily chart indicates there is no resistance above this level until the October 3 top at 27015.

Bearish Scenario

A sustained move under 26043 will signal the presence of sellers. If this move generates enough downside momentum then look for a break into the next uptrending Gann angle at 25886. Since the main trend is up, buyers could come in on a test of this angle.

If 25886 fails then look for the selling to extend into the next uptrending Gann angle at 25659. This is another level that could prove to be attractive to buyers.

The selling will continue under 25659 with the next target angle coming in at 25467.

Closing Price Reversal Top Scenario

Today’s session begins with the Dow up eight sessions from its main bottom at 24862 on February 8. This puts it inside the window of time for a closing price reversal top. A lower close today could trigger the start of a 2 to 3 day correction.