E-mini Dow Jones Industrial Average (YM) Futures Technical Analysis – January 7, 2019 Forecast

March E-mini Dow Jones Industrial Average futures are expected to open slightly higher based on the pre-market trade. Profit-takers came in early in the session after hitting a key retracement level. Furthermore, the Dow is up seven sessions from its December 26 main bottom, which puts it inside the window of time for a potentially bearish closing price reversal top.

At 1410 GMT, March E-mini Dow Jones Industrial Average futures are trading 23451, up 56 or +0.24%.

Daily Technical Analysis

The main trend is up according to the daily swing chart. The trend turned up on Friday when buyers took out 23417. The new main bottom is 22563. This is also a secondary higher bottom. A trade through this bottom will change the main trend to down.

The main range is 24860 to 21452. The index is currently testing is retracement zone at 23156 to 23558. Trader reaction to this zone will determine the near-term direction of the Dow.

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 is likely to be determined by trader reaction to the main Fibonacci level at 23558.

Bullish Scenario

Taking out 23558 will indicate the presence of buyers. This level is a potential trigger point for an acceleration to the upside. The daily chart indicates there is plenty of room to the upside with the next target angle coming in at 23836. Profit-takers could come in on a test of this angle. Taking out this angle with conviction, however, could trigger another acceleration to the upside with the next major downtrending Gann angle coming in at 24348.

Bearish Scenario

A sustained move under 23558 will signal the presence of sellers. If this creates enough downside momentum then look for a test of the uptrending Gann angle at 23244. Crossing to the weak side of this angle will put the index in a bearish position. This should lead to a quick break into the 50% level at 23156.

The 50% level at 23156 is the trigger point for an acceleration to the downside with the next target an uptrending Gann angle at 22819. This is followed by another uptrending Gann angle at 22691 and the main bottom at 22563.