E-mini Dow Jones Industrial Average (YM) Futures Technical Analysis – March 12, 2019 Forecast

March E-mini Dow Jones Industrial Average futures are trading flat shortly after the cash market opening. Volatility remains high with the price action being driven by concerns over Brexit and shares of Boeing.

The Dow has clawed back from early session weakness, fueled by a more than 4 percent drop in Boeing shares. The airline makers stock fell after Edward Jones downgraded the stock to hold from buy, citing a possible “delay in orders” after two 737 MAX jets crashed in less than 6 months. The market was supported by strength in the technology, energy and materials sectors. Brexit is also the source of volatility.

At 14:41 GMT, March E-mini Dow Jones Industrial Average futures are trading 25625, down 28, or -0.10%.

Daily Technical Analysis

The main trend is down according to the daily swing chart. However, momentum is beginning to shift to the upside with the formation of Friday’s closing price reversal bottom, despite the weakness in Boeing.

A trade through 25213 will negate the closing price reversal bottom and signal a resumption of the downtrend.

The main range is 24862 to 26238. Its retracement zone at 25550 to 25388 is controlling the direction of the Dow. This zone is acting like support today.

The short-term range is 26238 to 25213. Its retracement zone at 25726 to 25847 is the primary upside target. Since the main trend is down, sellers showed up on the first test of this zone earlier today. This zone is controlling 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 support cluster at 25534.

Bullish Scenario

A sustained move over 25534 will indicate the presence of buyers. Additional support is being provided by the 50% level at 25550. If this move can generate enough upside momentum then look for the rally to possibly lead to a re-test of the short-term 50% level at 25726.

The 50% level at 25726 stopped the rally earlier in the session. Taking it out later in the session could trigger an acceleration to the upside with the next target a Fibonacci level at 25847, followed by a downtrending Gann angle at 25886.

Bearish Scenario

A sustained move under 25534 will signal the presence of sellers. This could trigger an acceleration to the downside with the next target a Fib level at 25388. This is another trigger point for a steep break into 25213 and 25198.