E-mini Dow Jones Industrial Average (YM) Futures Technical Analysis – January 23, 2019 Forecast

The Dow is set to open stronger based on the pre-market trade. The catalysts behind the rally are strong earnings from blue chip companies like IBM, United Technologies and Procter & Gamble. The price action indicates that earnings are still the key market driver, and that concerns over the trade dispute and slowing global economy may take a backseat today.

At 1430 GMT, March E-mini Dow Jones Industrial Average futures are trading 24595, up 205 or +0.84%.

 

Daily Technical Analysis

The main trend is up according to the daily swing chart. A trade through 24745 will signal a resumption of the uptrend with 24860 the next major target. The market is not set up for a change in trend.

The minor trend is also up. A new main top was formed at 24745 on Tuesday. A trade through this level will signal a resumption of the minor trend. A change through 23640 will change the minor trend to down. This will also shift momentum to the downside.

The main range is 24860 to 21452. Its retracement zone at 23558 to 23156 is the primary downside target and support zone.

Daily Technical Forecast

Based on the early price action, the direction of the March E-mini Dow Jones Industrial Average will likely be determined by trader reaction to a downtrending Gann angle at 24428.

Bullish Scenario

A sustained move over 24428 will indicate the presence of buyers. If this creates enough upside momentum then look for a drive into a pair of downtrending Gann angles at 24644 and 24752. This is the last potential resistance angle before the 24745 minor top and the 24860 main top.

Bearish Scenario

A sustained move under 24428 will signal the presence of sellers. This could drive the index into the short-term uptrending Gann angle at 24099. If this fails then look for the selling to possibly extend into the downtrending Gann angle at 23996 and the longer-term uptrending Gann angle at 23756.