E-mini Dow Jones Industrial Average (YM) Futures Technical Analysis – January 9, 2019 Forecast

March E-mini Dow Jones Industrial Average futures are trading higher on the opening. The rally is being driven by increased demand for risky assets as investors increase bets that China and the United States will reach a new trade agreement shortly. Traders will also get the chance to respond to comments from several Fed policymakers. Furthermore, the Fed will release its December monetary policy meeting minutes at 1900 GMT.

At 1432 GMT, March E-mini Dow Jones Industrial Average futures are trading 23864, up 121.00 or +0.51%.

Daily Technical Analysis

The main trend is up according to the daily swing chart. The current chart pattern projects a target of 24528 this week.

The nearest upside target is the main top at 24860. A trade through 222563 will change the main trend to down.

The main range is 24860 to 21452. Its retracement zone is 23156 to 23558. This zone is new support. Trading above this zone is also helping to generate upside momentum.

Daily Technical Forecast

Based on the early price action, the direction of the March E-mini Dow Jones Industrial Average is likely to be determined by a pair of Gann angles at 23756 and 23708.

Bullish Scenario

A sustained move over 23756 will indicate the presence of buyers. The daily chart is wide open to the upside with the first downtrending target angle coming in at 24284. This is followed by the swing chart target at 24528 and another downtrending Gann angle at 24572.

Bearish Scenario

A failure to hold 23756 will be the first sign of weakness. This is followed by a downtrending Gann angle at 23708. Crossing to the weak side of this angle will put the market in a bearish position with the main Fibonacci level at 23558 the next downside target.

The daily chart begins to open up to the downside under 23558 with the next target angle coming in at 23331. If this fails then look for a further break into the main 50% level at 23156.