E-mini Dow Jones Industrial Average (YM) Futures Technical Analysis – January 29, 2019 Forecast

Blue chips stocks are inching higher shortly before the cash market opening. Traders seem to be ignoring, for the time being, tensions over U.S.-China trade negotiations and worries about a slowing global economy. Earlier in the day, Dow components Pfizer and 3 M both reported better-than-expected earnings and revenue. However, Pfizer issued weather-than-expected guidance for 2019 and 3M lowered its 2019 earnings guidance. Traders are also waiting for earnings reports from companies like Apple, Amgen and eBay.

At 1259 GMT, March E-mini Dow Jones Industrial Average futures are trading 24531, up 56 or +0.23%.

Daily Technical Analysis

The main trend is up according to the daily swing chart. A trade through 24860 will signal a resumption of the uptrend. The main trend will change to down on a trade through 21452.

The minor trend is also up. It will change to down on a trade through 24216. This will shift momentum to the downside. The next downside target is the minor bottom at 23640.

Currently, the market is trading inside a major retracement zone at 24234 to 24890. This zone is controlling the near-term direction of the Dow.

The short-term range is 22563 to 24830. If the minor trend changes to down then look for a potential break into its retracement zone at 23697 to 23429.

Daily Technical Forecast

Based on the early price action, the direction of the March E-mini Dow Jones Industrial Average on Tuesday is likely to be determined by trader reaction to the uptrending Gann angle at 24268.

Bullish Scenario

A sustained move over 24268 will indicate the presence of buyers. If this move creates enough upside momentum then look for a move into another uptrending Gann angle at 24611. Overtaking this angle will indicate the buying is getting stronger. This could trigger a rally into the minor top at 24830 and the main top at 24860, followed by the resistance cluster at 24890 to 24919.

The trigger point for an acceleration to the upside is 24919. The next resistance angle drops in at 25512.

Bearish Scenario

A failure to hold 24268 will be the first sign of weakness. Taking out 24234 will indicate the selling is getting stronger. This could trigger a break through the minor bottom at 24216 and an acceleration to the downside with the next major target coming in at 23697.