E-mini Dow Jones Industrial Average (YM) Futures Technical Analysis – February 5, 2019 Forecast

Based on the price action the last four sessions, the direction of the March E-mini Dow Jones Industrial Average the rest of the session will be determined by trader reaction to the main Fibonacci level at 24890.
James Hyerczyk
E-mini Dow Jones Industrial Average

March E-mini Dow Jones Industrial Average futures are grinding higher shortly after the cash market opening on Tuesday. With Asia on holiday, keeping China on the sidelines and investors awaiting President Trump’s State of the Union Address later tonight, investors are focusing on earnings reports today. The early session rally is being fueled by gains in DowDuPont and Intel. Support is also being generated by a strong performance in the consumer discretionary sector.

At 1801 GMT, March E-mini Dow Jones Industrial Average futures are trading 25251, up 64 or +0.25%.

Daily March E-mini Dow Jones Industrial Average

Daily Swing Chart Technical Analysis

The main trend is up according to the daily swing chart. The next upside target is the December 3 main top at 26110. How it gets to this price level will be determined by the next catalyst driving the price action. Bullish news about a U.S.-China trade deal is likely to trigger an acceleration into this top. Positive economic or earnings news is likely to continue to fuel the slow steady climb.

The major retracement zone is 24890 to 24234. This zone is controlling the near-term direction of the Dow. Holding above it will help generate the steady upside bias. Traders should consider this zone support.

The minor trend is up. A trade through 24924 will change the minor trend to down. This will also shift momentum to the downside.

Daily Swing Chart Technical Forecast

Based on the price action the last four sessions, the direction of the March E-mini Dow Jones Industrial Average the rest of the session will be determined by trader reaction to the main Fibonacci level at 24890.

Bullish Scenario

A sustained move over 24890 will continue to indicate the presence of buyers. If this can generate enough upside momentum then the Dow will eventually reach the main upside target at 26110.

Bearish Scenario

A failure at 24890 and a sustained move under this level will signal the presence of sellers. It will also put the Dow in a position to post a potentially bearish closing price reversal top. This could lead to the start of a 2 to 3 day correction.

Turning lower for the session today will actually signal the start of the closing price reversal top. Additionally, taking out 24924 will change the minor trend to down and shift momentum to the downside.

Please let us know what you think in the comments below. 

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