E-mini Dow Jones Industrial Average (YM) Futures Technical Analysis – Holding Below 29374 Signals Weak Tone

March E-mini Dow Jones Industrial Average futures are trading lower on Tuesday, shortly after the cash market opening. The losses were worse during the overnight session after Apple said Monday it does not expect to meet its second-quarter forecast for revenue. The revenue warning put a dent in market sentiment because it raised concerns over the potential economic fallout of China’s fast-spreading coronavirus.

At 14:48 GMT, March E-mini Dow Jones Industrial Average futures are trading 29297, down 98 or -0.33%.

Walmart shares offset some of Apple’s decline, trading more than 1% higher before the bell. The stock briefly fell more than 1% earlier after the retail giant reported earnings that fell short of Street expectations.

Both Apple and Walmart are components of the Dow Jones Industrial Average.

Daily Technical Analysis

The main trend is up according to the daily swing chart. A trade through 29543 will signal a resumption of the uptrend. The main trend will change to down on a trade through 28850.

The short-term range is 28850 to 29543. Its retracement zone at 29197 to 29115 is the first downside target. Earlier today, the Dow found support at 29204, slightly above the 50% level at 29197.

The main range is 28105 to 29543. Its retracement zone at 28824 to 28654 is the major downside target and value zone.

Daily Technical Forecast

Based on the early price action, the direction of the March E-mini Dow Jones Industrial Average the rest of the session on Tuesday is likely to be determined by trader reaction to the short-term 50% level at 29197.

Bullish Scenario

A sustained move over 29197 will indicate the presence of buyers. This will indicate that investors are still in the “buy the dip” mode. If this creates enough upside momentum then look for buyers to challenge the minor pivot at 29374.

Overtaking 29374 will indicate the buying is picking up strength. This could lead to a test of 29543. Overtaking the steep uptrending Gann angle at 28489 will put the Dow in a bullish position.

Bearish Scenario

A sustained move under 29197 will signal the presence of sellers. The first downside target is the short-term Fibonacci level at 29115.

Buyers could come in on the first test of 29115, but if it fails then look for a potential acceleration to the downside with the major uptrending Gann angle at 28873 the next likely downside target. If this fails then look for the selling to possibly extend into the main bottom at 28850, followed by the main 50% level at 28824.