Advertisement
Advertisement

E-mini Dow Jones Industrial Average (YM) Futures Technical Analysis – January 8, 2019 Forecast

By:
James Hyerczyk
Published: Jan 8, 2019, 14:59 UTC

Based on the current price action, the direction of the March E-mini S&P 500 Index the rest of the session is likely to be determined by trader reaction to the downtrending Gann angle at 23772.  

E-mini Dow Jones Industrial Average

March E-mini Dow Jones Industrial Average futures opened higher on Tuesday. Buyers are being driven by hopes of an early settlement of the US-China trade spat and the possibility the U.S. Federal Reserve may pause its current rate tightening cycle. Although the market is bullish on the opening, we could see some profit-taking late in the session as traders prepare for Wednesday’s release of the Fed’s December monetary policy meeting minutes.

At 1430 GMT, March E-mini Dow Jones Industrial Average futures are trading 23783, up 271 or +1.13%.

E-mini Dow Jones Industrial Average
Daily March E-mini Dow Jones Industrial Average

Daily Technical Analysis

The main trend is up according to the daily swing chart. The next upside target is the main top at 24860. The main trend will change to down on a trade through 22563.

The main range is 24860 to 21452. Its retracement zone is 23156 to 2547.75. The market is currently trading on the strong side of this retracement zone, helping to support the upside bias. These two levels are also new support.

The swing chart projects 24528 as a possible upside target.

Daily Technical Forecast

Based on the current price action, the direction of the March E-mini S&P 500 Index the rest of the session is likely to be determined by trader reaction to the downtrending Gann angle at 23772.

Bullish Scenario

Overtaking and sustaining a rally over 23772 will indicate the presence of buyers. This angle is a potential trigger point for an acceleration to the upside with the next target angle coming in at 24316. This is followed by the swing chart target at 24528.

Bearish Scenario

The inability to overcome 23772 will signal the presence of sellers. This could trigger a pullback into a Fibonacci level at 23558. This is followed by an uptrending Gann angle at 23500. This is a potential trigger point for an acceleration to the downside with the next targets coming in at 23156 to 23075. Since the main trend is up, buyers could come in on a test of this area.

About the Author

James is a Florida-based technical analyst, market researcher, educator and trader with 35+ years of experience. He is an expert in the area of patterns, price and time analysis as it applies to futures, Forex, and stocks.

Did you find this article useful?

Advertisement