E-mini Dow Jones Industrial Average (YM) Futures Technical Analysis – February 6, 2019 Forecast

Based on the early price action, the direction of the index the rest of the session is likely to be determined by trader reaction to yesterday’s high at 25374.
James Hyerczyk
E-mini Dow Jones Industrial Average

March E-mini Dow Jones Industrial Average futures are drifting lower shortly after the cash market. Upside momentum died early in the session so now traders are likely to press the short-side. Trump’s speech last night failed to generate any upside momentum. Powell’s speech this evening may be driving the price action since he is expected to talk about monetary policy.

At 14:52 GMT, March E-mini Dow Jones Industrial Average futures are trading 25321, down 3 or -0.01%.

Daily March E-mini Dow Jones Industrial Average

Daily Technical Analysis

The main trend is up according to the daily swing chart. Given the prolonged move up in terms of price and time, traders should start watching for signs of a top like a closing price reversal top. It his chart pattern is formed and confirmed then look for the start of a 2 to 3 day correction.

A trade through 25374 will signal a resumption of the uptrend. The main trend will change to down on a trade through 22563.

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

The market is also trading on the strong side of a major retracement zone at 24890 to 24234. This zone is controlling the near-term direction of the market. Look for the upside bias to continue as long as the index holds this area. Traders should treat it like support.

Daily Technical Forecast

Based on the early price action, the direction of the index the rest of the session is likely to be determined by trader reaction to yesterday’s high at 25374.

Bullish Scenario

A sustained move over 25374 will indicate the presence of buyers. If this move creates enough upside momentum then look for buyers to take a run at the major top at 26110. Depending on how the news breaks, we could see a spike to the upside or a slow, steady climb.

Bearish Scenario

The inability to overtake 25374 will signal the presence of sellers. If this move generates enough downside momentum then look for a potential pullback into the major Fibonacci level at 24890.

Closing Price Reversal Top Scenario

Taking out 25374 then falling below yesterday’s close at 25324 will signal the start of a closing price reversal top. A close below this level will complete the move. It it’s confirmed on Thursday then look for the start of a 2 to 3 day correction.

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

Don't miss a thing!

Discover what's moving the markets. Sign up for a daily update delivered to your inbox

Latest Articles

See All

Expand Your Knowledge

See All
The content provided on the website includes general news and publications, our personal analysis and opinions, and contents provided by third parties, which are intended for educational and research purposes only. It does not constitute, and should not be read as, any recommendation or advice to take any action whatsoever, including to make any investment or buy any product. When making any financial decision, you should perform your own due diligence checks, apply your own discretion and consult your competent advisors. The content of the website is not personally directed to you, and we does not take into account your financial situation or needs.The information contained in this website is not necessarily provided in real-time nor is it necessarily accurate. Prices provided herein may be provided by market makers and not by exchanges.Any trading or other financial decision you make shall be at your full responsibility, and you must not rely on any information provided through the website. FX Empire does not provide any warranty regarding any of the information contained in the website, and shall bear no responsibility for any trading losses you might incur as a result of using any information contained in the website.The website may include advertisements and other promotional contents, and FX Empire may receive compensation from third parties in connection with the content. FX Empire does not endorse any third party or recommends using any third party's services, and does not assume responsibility for your use of any such third party's website or services.FX Empire and its employees, officers, subsidiaries and associates, are not liable nor shall they be held liable for any loss or damage resulting from your use of the website or reliance on the information provided on this website.
This website includes information about cryptocurrencies, contracts for difference (CFDs) and other financial instruments, and about brokers, exchanges and other entities trading in such instruments. Both cryptocurrencies and CFDs are complex instruments and come with a high risk of losing money. You should carefully consider whether you understand how these instruments work and whether you can afford to take the high risk of losing your money.FX Empire encourages you to perform your own research before making any investment decision, and to avoid investing in any financial instrument which you do not fully understand how it works and what are the risks involved.