E-mini Dow Jones Industrial Average (YM) Futures Technical Analysis – Holding Above 24890 Will Indicate Strong Buying

Based on this week’s price action and the current price at 25008, the direction of the March E-mini Dow Jones Industrial Average the rest of the week is likely to be determined by trader reaction to the downtrending Gann angle at 25086. For bullish traders, essentially, we’d like to see the March E-mini Dow Jones Industrial Average futures contract sustain a rally on the bullish side of the main retracement zone at 24890 to 24234.
James Hyerczyk
Bullish Stock Market

The benchmark Dow Jones Industrial Average posted a solid gain on Wednesday, driven higher by a dovish Fed which signaled it would be “patient” with future rate hikes. This greenlit the rally in the stock market with the Dow closing above 25,000 for the first time since December 4. There could be further upside action since futures traders are pricing in no rate hikes this year. The focus for traders will now shift to U.S.-trade talks.

At 04:35 GMT, March E-mini Dow Jones Industrial Average futures are trading 25008, up 40 or +0.16%.

Daily March E-mini Dow Jones Industrial Average

Weekly Technical Analysis

The main trend is down according to the weekly swing chart. However, momentum has been trending higher since the formation of the closing price reversal bottom at 21452 during the week-ending December 28.

The main trend will change to up on a trade through 26110. A trade through 21452 will negate the closing price reversal bottom and signal a resumption of the downtrend.

The main range is 27015 to 21452. Its retracement zone at 24890 to 24234 is controlling the longer-term direction of the Dow. Closing above this zone will give the market an upside bias.

The Dow is now up five weeks from its last main bottom. Typically, this type of rallies forms a closing price reversal top after a 7 to 10 week rally. So time is indicating there is still room to the upside.

Weekly Technical Forecast

Based on this week’s price action and the current price at 25008, the direction of the March E-mini Dow Jones Industrial Average the rest of the week is likely to be determined by trader reaction to the downtrending Gann angle at 25086.

Bullish Scenario

Taking out 25086 and sustaining the rally will indicate the buying is getting stronger. This could trigger an acceleration to the upside with the next target angle coming in at 25598. We could see a technical bounce on the first test of this angle, but if it fails then look for the rally to possibly extend into the next major downtrending Gann angle at 25927. This is followed by the main top at 26110.

Bearish Scenario

The inability to overcome or sustain a rally over 25086 will signal the presence of sellers. This could trigger a quick pullback into 24890 and a downtrending Gann angle at 24839.

Crossing to the weak side of the downtrending Gann angle at 24839 will indicate the selling is getting stronger with the next major downside targets coming in at 24234 and 24012.

For bullish traders, essentially, we’d like to see the March E-mini Dow Jones Industrial Average futures contract sustain a rally on the bullish side of the main retracement zone at 24890 to 24234.

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

Top Promotions

Top Brokers

IMPORTANT DISCLAIMERS
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.
RISK DISCLAIMER
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.
FOLLOW US