E-mini Dow Jones Industrial Average (YM) Futures Technical Analysis – Needs to Hold 28619 to Sustain Upside Momentum

March E-mini Dow Jones Industrial Average futures are trading higher early Friday after touching another record level. Recent market sentiment has been boosted since the U.S. and China announced they have reached a phase one trade agreement earlier in December. The two economic powerhouses are in the midst of translating the deal, with the aim of signing it in early January.

At 09:38 GMT, March E-mini Dow Jones Industrial Average futures are at 28671, up 52 or +0.19%.

Daily Swing Chart Technical Analysis

The main trend is up according to the daily swing chart. The uptrend was reaffirmed earlier today when buyers took out yesterday’s higher. On Thursday, the affirmation of the uptrend negated a closing price reversal top that had formed on Tuesday.

The main trend will change to down on a move through 27297. This is highly unlikely. However, given the prolonged rally and the lack of resistance, a closing price reversal top is likely to stop this rally, but it is going to take a confirmation of the chart pattern to trigger a short-term correction.

On Tuesday, the market formed a closing price reversal top, but it never confirmed the potentially bearish chart pattern with follow-through selling pressure.

The moving minor range is 27715 to 28703. Its retracement zone at 28209 to 28092 is the first potential downside target.

Daily Swing Chart Technical Forecast

Based on the prolonged moved up in terms of price and time, and the early price action, the direction of the March E-mini Dow Jones Industrial Average the rest of the session on Friday is likely to be determined by trader reaction to Thursday’s close at 28619.

Bullish Scenario

A sustained move over 28619 will indicate the presence of buyers. Taking out the intraday high at 28703 will indicate the buying is getting stronger.

Bearish Scenario

A sustained move under 28619 will signal the presence of sellers. The first downside target is 28499. Taking out this level could trigger an acceleration to the downside with 28209 the first likely downside target.