E-mini Dow Jones Industrial Average (YM) Futures Technical Analysis – March 7, 2019 Forecast

March E-mini Dow Jones Industrial Average futures are trading lower shortly after the cash market opening. The market is being pressured by concerns over U.S.-China trade relations. Some investors are selling because they believe a trade deal has been priced into the market. Others are paring positions because they think the U.S. may walk away from negotiations. Investors are also failing to respond to the news of additional stimulus from the European Central Bank.

At 14:34 GMT, March E-mini Dow Jones Industrial Average futures are trading 25590, down 77 or -0.31%.

Daily Technical Analysis

The main trend is down according to the daily swing chart. The downtrend was reaffirmed earlier today when sellers took out 25605. This also confirmed the closing price reversal top from March 4.

The short-term range is 25275 to 26238. Its retracement zone is 25757 to 25643. The market is trading on the weak side of this zone, indicating the selling is getting stronger.

The main range is 24862 to 26238. Its retracement zone at 25550 to 25388 is currently being tested. This zone represents value so don’t be surprised if buyers return on a test of this zone.

Daily Technical Forecast

Based on the current price at 25590, the direction of March E-mini Dow Jones Industrial Average the rest of the session is likely to be determined by trader reaction to the 50% level at 25550.

Bullish Scenario

A sustained move over 25550 will indicate the return of buyers. This is likely to create a labored rally with potential targets 25643, 25726 and 25757. The latter is the trigger point for an acceleration to the upside.

Bearish Scenario

A sustained move under 25550 will signal the presence of sellers. If this move generates enough downside momentum then look for the selling to possibly extend into the uptrending Gann angle at 25438. If this angle fails then the selling will likely extend into the Fibonacci level at 25388.

The Fib level is another trigger point for an acceleration to the downside. Its target angle comes in at 25150.