E-mini Dow Jones Industrial Average (YM) Futures Technical Analysis – Hovering Near Record High on Low VolumeThe direction of the March E-mini Dow on Thursday is likely to be determined by trader reaction to 29826.
March E-mini Dow Jones Industrial Average futures are inching higher on the opening of Thursday’s holiday shortened session. No one is expecting a major move in the market today, but there is news to deal with.
Tech traders are watching Alibaba after China launched an antitrust investigation into the e-commerce giant. Overnight in China, the new not only drove the company’s shares down over 8%, but the weakness also spread to its affiliates. Any U.S. stocks linked to Alibaba could greatly underperform the Dow.
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At 14:31 GMT, March E-mini Dow Jones Industrial Average futures are trading 30083, up 49 or +0.16%.
Energy stocks could also be on the radar for traders especially shares of Exxon Mobil Corp and Chevron Corp, which rose slightly in premarket trading. Both stocks are tracking the strength in the crude oil market as a drop in U.S. inventories and hints of an imminent Brexit deal underpinned oil prices.
Daily Swing Chart Technical Analysis
The main trend is down according to the daily swing chart. The trend turned down on Monday when sellers took out 29624, and was reaffirmed the same day when 29350 was violated.
A move through 29318 will signal a resumption of the downtrend, while a trade through 30333 will change the main trend to up.
The minor range is 30333 to 29318. Its 50% level or pivot at 29826 has been holding as support for three sessions.
The short-term range is 25872 to 30333. If the downtrend resumes then its retracement zone at 28103 to 27576 will become the primary downside target area.
Daily Swing Chart Technical Forecast
The direction of the March E-mini Dow on Thursday is likely to be determined by trader reaction to 29826.
We don’t expect to see much of a trading range due to the low volume, but we’re likely to see an upside bias on a sustained move over 29826.
If 29826 fails especially on the close then look for this downside bias to possibly carryover into next week.