E-mini Dow Jones Industrial Average (YM) Futures Technical Analysis – Forming Closing Price Reversal Top

March E-mini Dow Jones Industrial Average futures fell from a record high on Friday and is currently trading lower shortly after the midsession as a coronavirus stimulus deal remained in focus ahead of a weekend deadline. Technology shares, which supported the market this week, were the biggest drag on the overall performance of the major indexes.

At 18:56 GMT, March E-mini Dow Jones Industrial Average futures are trading 30018, down 184 or -0.61%.

Bipartisan lawmakers said on Thursday the COVID-19 pandemic’s worsening toll meant that failure to agree on new stimulus was no longer an option. Additionally, dismal retail sales data and unemployment claims through the week were also seen as furthering the case for more aid.

In stock related news, Dow Component Microsoft Corp shed 0.4% after saying it found malicious software in its systems related to a massive hacking campaign disclosed by U.S. officials this week.

Daily Swing Chart Technical Analysis

The main trend is up according to the daily swing chart, however, momentum may be getting ready to shift to the downside with the formation of a potentially bearish closing price reversal top on Friday.

A trade through the intraday high at 30260 will signal a resumption of the uptrend, while a move through 29624 changes the main trend to down.

The minor range is 29624 to 30260. Its 50% level at 29942 is the first potential downside target.

The second minor range is 29350 to 30260. Its 50% level at 29805 is another potential downside target.

Daily Swing Chart Technical Forecast

The direction of the March E-mini Dow Jones Industrial Average into the close will be determined by trader reaction to 30220.

Bearish Scenario

A sustained move under 30220 will indicate the presence of sellers. The first downside target is 29942, followed by 29811. Since the main trend is up, we could see a technical bounce on the first test of these levels.

If 29811 fails as support then look for a move into the minor bottom at 29751. If sellers take out this bottom then look for the weakness to extend into the main bottom at 29624.

A failure to hold 29624 will change the main trend to down.

Bullish Scenario

A sustained move over 30220 will signal the presence of buyers. This could trigger a retest of 30260 and a possible breakout over this top.

Side Notes

A close under 30220 will form a closing price reversal top. If confirmed on Monday, this could trigger the start of a 2 to 3 day correction and a change in trend if the selling is strong enough to take out 29624.

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