E-mini Dow Jones Industrial Average (YM) Futures Technical Analysis – Rangebound; Could Strengthen Over 28350, Weaken Under 28154

March E-mini Dow Jones Industrial Average futures are trading slightly better shortly after the cash market opening as investors shrugged off the news of President Donald Trump’s impeachment as well as mixed U.S. economic data. Early in the session, Cisco Systems was the best-performing Dow component, rising 1.6%.

On the economic data front, weekly jobless claims fell to 234,000 from 252,000 the week before. However, economists polled by Reuters expected claims to fall to 225,000. Meanwhile, the Philadelphia Federal Reserve’s business index fell to 0.3 in December from 10.4 in the previous month. Economists expected the index to slip to 8.

At 15:20 GMT, March E-mini Dow Jones Industrial Average futures are trading 28311, up 30 or +0.10%.

Daily Technical Analysis

The main trend is up according to the daily swing chart. A trade through 28350 will signal a resumption of the uptrend. The main trend will change to down on a trade through 27297.

The minor trend is also up. A move through 27715 will change the minor trend to down. This will also shift momentum to the downside.

The market is trading inside Monday’s range for the third straight session. This tends to indicate investor indecision and impending volatility.

The short-term range is 27715 to 28350. Its retracement zone at 28033 to 27958 is the first downside target.

The main range is 27297 to 28350. Its retracement zone at 27826 to 27701 is the next and more important retracement zone.

Daily Technical Forecast

Extremely low trading volume is helping to hold the March E-mini Dow Jones Industrial Average in a tight range for the third straight session.

Trader reaction to 28350 and 28154 is likely to determine the direction of the market on Thursday. However, due to the low volume, you have to be careful buying strength or selling weakness.

Bullish Scenario

Taking out and sustaining a rally over 28350 will indicate the buying is getting stronger. If the move is accompanied by rising volume then look for an acceleration to the upside. There is no resistance, however, 28611 is the next potential upside target.

Bearish Scenario

The nearest downside target angle comes in at 28163. Watch for a technical bounce on the first test of this angle. If it fails then look for a test of 28154.

Taking out 28154 could trigger a break into the next uptrending Gann angle at 28065, followed by the short-term 50% level at 28033.