E-mini Dow Jones Industrial Average (YM) Futures Technical Analysis – February 4, 2019 Forecast

March E-mini Dow Jones Industrial Average futures are pointing lower shortly before the cash market opening. Uncertainty ahead of a slew of quarterly corporate earnings reports may be weighing on prices. The big report is from Alphabet, which announces after the bell. A rise in Treasury yields in reaction to Friday’s strong jobs and factory activity reports could be also keeping a lid on prices. Volume could be on the light side with the start of the Lunar New Year in Asia.

At 14:02 GMT, March E-mini Dow Jones Industrial Average futures are trading 24994, down 2 or -0.02%.

Daily Swing Chart Technical Analysis

The main trend is up according to the daily swing chart. A trade through 25143 will signal a resumption of the uptrend. The uptrend is safe for now, but the Dow is vulnerable to a potentially bearish closing price reversal top.

The minor trend is also up. A trade through 24284 will change the minor trend to down. This will also shift momentum to the downside.

The main range is 26110 to 21452. Its retracement zone is 24890 to 24234. This zone is controlling the near-term direction of the market. Holding above this zone should help maintain the strong upside bias. Traders should treat the Fib level at 24890 and the 50% level at 24234 as support.

Daily Swing Chart Technical Forecast

Based on the early price action and the current price at 24994, the direction of the March E-mini Dow Jones Industrial Average futures contract on Monday is likely to be determined by trader reaction to the main Fibonacci level at 24890.

Bullish Scenario

A sustained move over 24890 will indicate the presence of buyers. Taking out 25143 will indicate the buying is getting stronger. The daily chart indicates there is plenty of room to the upside with 26110 the next major upside target. So don’t be surprised by an acceleration to the upside over the short-term.

Bearish Scenario

A sustained move under 24890 will signal the presence of sellers. This could trigger a sharp break into a minor 50% level at 24714. Buyers could come in on the first test of this level. If it fails then look for the selling to possibly extend into a cluster of potential support levels at 24284, 24234 and 24216.

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