E-mini Dow Jones Industrial Average (YM) Futures Technical Analysis – January 16, 2019 Forecast

March E-mini Dow Jones Industrial Average futures are called higher. The early buying is being fueled by strong quarterly earnings from major banks like Goldman Sachs and Bank of America. Upside momentum is also being driven by speculators betting on fresh stimulus from China. Investors are showing all most no reaction to the Brexit news.

At 1413 GMT, March E-mini Dow Jones Industrial Average futures are trading 24118, up 134 or +0.56%.

Daily Technical Analysis

The main trend is up according to the daily swing chart. The next upside target is the December 12 main top at 24860. 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 move through 22563.

The main range is 24860 to 21452. Its retracement zone at 23558 to 23156 is new support.

Daily Technical Forecast

Based on the early price action, the direction of the March E-mini Dow Jones Industrial Average on Wednesday is likely to be determined by trader reaction to the downtrending Gann angle at 24124.

Bullish Scenario

A sustained move over 24124 will indicate the presence of buyers. If this creates enough upside momentum then look for the rally to extend into the next downtrending Gann angle at 24492. This is followed by another downtrending Gann angle at 24676. This is the last potential resistance angle before the 24860 main top.

Bearish Scenario

A sustained move under 24124 will signal the presence of sellers. If this creates enough downside momentum, we could see a break into the minor bottom at 23640. Breaking this bottom will change the minor trend to down and shift momentum to the downside.

The next support is a short-term uptrending Gann angle at 23587. This is followed by the major Fibonacci level at 23558. If this level fails then look for the selling to possibly extend into another uptrending Gann angle at 23244, followed by the main 50% level at 23156.