E-mini Dow Jones Industrial Average (YM) Futures Technical Analysis – March 21, 2019 Forecast

June E-mini Dow Jones Industrial Average futures are trading higher shortly after the cash market opening. The market is recovering from an early sell-off that drove the Dow to its lowest level since March 13. The early weakness was fueled by weaker bank stocks and a 26% drop in shares of Biogen. Bank stocks were weaker because of the dovish Fed announcements on Wednesday. Biogen fell after the company announced it was discontinuing trials for a drug aimed at treating Alzheimer’s disease.

At 13:50 GMT, June E-mini Dow Jones Industrial Average futures are trading 25795, up 66 or +0.25%.

Daily Technical Analysis

The main trend is down according to the daily swing chart. The market is under pressure this week because of the closing price reversal top at 26145 on March 19. A trade through this level will negate the chart pattern and signal a resumption of the uptrend. The main trend will change to down on a move through 25246.

The short-term range is 25246 to 26145. Its retracement zone at 25696 to 25589 is controlling the short-term direction of the market. Today’s rally started when buyers came in to support the market inside the retracement zone at 25608.

Daily Technical Forecast

Given the current price at 25795 and the earlier price action, the nearest resistance is an uptrending Gann angle 25822. Overtaking this angle will indicate the buying is getting stronger. This could trigger a rally into the steep downtrending Gann angle at 25889.

Overcoming 25889 could trigger an acceleration into the next downtrending Gann angle at 25975 ND 26017.

If buyers are unable to overtake 25822 then look for a possible retest of the main 50% level at 25696. This is followed closely by a downtrending Gann angle 25687. Crossing to the weak side of this angle will put the market in a bearish position with 25589 the next downside target.