E-mini Dow Jones Industrial Average (YM) Futures Technical Analysis – February 27, 2019 Forecast

March E-mini Dow Jones Industrial Average futures are trading slightly lower shortly after the cash market opening. Buyers have clawed back most of the earlier losses. Volume is below average as investors prepare for the second day of Congressional testimony from U.S. Federal Reserve Chairman Jerome Powell. He’s not likely to move the market unless he says something overtly dovish or hawkish. Yesterday, he stuck with the script by reiterating the Fed’s message of “patience”.

At 14:50 GMT, March E-mini Dow Jones Industrial Average futures are trading 26006, down 31 or -0.10%.

Daily Technical Analysis

The main trend is up according to the daily swing chart. A trade through 26238 will signal a resumption of the uptrend. The main trend will change to down on a move through 25275.

The minor trend is also up. A move through 25753 will change the minor trend to down. This will also shift momentum to the downside.

The short-term range is 25275 to 26238. Its retracement zone at 25757 to 25643 is the primary downside target. Since the main trend is up, buyers are likely to show up on the first test of this zone.

Daily Technical Forecast

Based on the early price action, the direction of the March E-mini Dow Jones Industrial Average futures market on Wednesday is likely to be determined by trader reaction to the downtrending Gann angle at 25982.

Bullish Scenario

A sustained move over 25982 will indicate the presence of buyers. The first upside target is a downtrending Gann angle at 26110. Overtaking this angle will likely lead to a test of a potential resistance cluster at 26171 to 26174.

Overcoming 26174 will indicate the buying is getting stronger. This could trigger an acceleration to the upside with the next targets the main top at 26238 and the November 8 main top at 26300.

Bearish Scenario

A sustained move under 25982 will signal the presence of sellers. The daily chart is wide open under this angle with the next potential downside target the short-term 50% level at 25757. This is followed by an uptrending Gann angle at 25723.

The way of least resistance is down. Any rally is likely to be a labored event.