E-mini Dow Jones Industrial Average (YM) Futures Technical Analysis – Reaction to 28723 Determines Close

March E-mini Dow Jones Industrial Average futures are trading higher late Wednesday with most of the rally driven by shares of Apple, Dow (Chemical) and General Electric. The market opened stronger, but buyers added to the early strength after the U.S. Federal Reserve announced it would keep interest rates unchanged as expected.

At 20:05 GMT, March E-mini Dow Jones Industrial Average futures are trading 28764, up 54 or +0.19%.

Daily Technical Analysis

The main trend is up according to the daily swing chart. A trade through 28405 will change the main trend to down. A move through 29362 will signal a resumption of the uptrend.

The short-term range is 29362 to 28405. Its retracement zone at 28884 to 28996 is the first upside target zone. This area is very important to the structure of the chart pattern.

Aggressive counter-trend sellers could come in on a test of this zone. They are going to try to form a secondary lower top. Buyers are going to try to take out 28996 in an effort to retest the all-time high.

The intermediate range is 28084 to 29362. Its 50% level at 28723 was straddled the past two sessions.

The main range is 27297 to 29362. Its retracement zone at 28330 to 28086 is the primary upside target. This zone represents value. It is also controlling the longer-term direction of the Dow.

Daily Technical Forecast

Based on the early price action and the current price at 28764, the direction of the March E-mini Dow Jones Industrial Average into the close on Wednesday is likely to be determined by trader reaction to the 50% level at 28723.

Bullish Scenario

A sustained move over 28723 will indicate the presence of buyers. If this move creates enough upside momentum then look for the rally to possibly extend into the resistance cluster at 28884 to 28914. Overtaking this area will indicate the buying is getting stronger. This could trigger a late session surge into the short-term Fibonacci level at 28996.

Bearish Scenario

A sustained move under 28723 will signal the presence of sellers. If this move creates enough downside momentum then look for the selling to possibly extend into the support cluster at 28538 to 28513.