E-mini Dow Jones Industrial Average (YM) Futures Technical Analysis – March 26, 2019 Forecast

Dampened fears of a recession and a slight rise in Treasury yields are helping to drive up demand for higher risk assets on Tuesday, leading to the call for a firmer opening.

At 13:21 GMT, June E-mini Dow Jones Industrial Average futures are trading 25730, up 153 or +0.60%.

Daily Technical Analysis

The main trend is down according to the daily swing chart. However, momentum shifted to the upside with the formation of the closing price reversal bottom at 25377 and the pattern’s subsequent confirmation earlier today.

A trade through 25377 will negate the closing price reversal bottom and signal a resumption of the downtrend. This could lead to a test of the next main bottom at 25246. The main trend will change to up on a trade through 26145.

The main range is 25246 to 26145. Its retracement zone at 25696 to 25589 is new support.

The short-term range is 26145 to 25377. Its retracement zone at 25761 to 25852 is the primary upside target. Since the main trend is down, sellers may come in on the first test of this range.

Daily Technical Forecast

Based on the early price action and the current price at 25730, the direction of the June E-mini Dow Jones Industrial Average futures contract on Tuesday is likely to be determined by trader reaction to the 50% level at 25696.

Bullish Scenario

A sustained move over 25696 will indicate the presence of buyers. The first upside target is the short-term 50% level at 25761. This is followed by a downtrending Gann angle at 25825, followed by the short-term Fibonacci level at 25852. Anyone of these levels could attract sellers.

The trigger point for an acceleration to the upside with the next major target a downtrending Gann angle at 25985.

Bearish Scenario

A sustained move under 25696 will signal the presence of sellers. This could trigger a break into the uptrending Gann angle at 25630. This is followed by a Fibonacci level at 25589. This price is a potential trigger point for an acceleration to the downside with the next major target angle coming in at 25438.