E-mini Dow Jones Industrial Average (YM) Futures Technical Analysis – Reaction to 36346 Sets Tone into Close

March E-mini Dow Jones Industrial Average futures are inching higher on Monday after recovering from an early session setback. The market appears to be well-supported as investors showed hope about the economy’s ability to overcome the surge in COVID cases.

At 15:47 GMT, March E-mini Dow Jones Industrial Average futures are trading 36310, up 84 or +0.23%.

The rally is being spread across many sectors including the financials, technology and energy. Boeing shares are the best performer, up 4.35%. They are followed by Goldman Sachs Group at $12.69, up 3.34% and American Express Co, up 2.52%. The energy sector is led by Chevron Corp, up 1.67%.

Daily Swing Chart Technical Analysis

The main trend is up according to the daily swing chart, however, momentum has been trending lower since the formation of the closing price reversal top on December 30.

A trade through 36572 will negate the closing price reversal top and signal a resumption of the uptrend. A move through 34547 will change the main trend to down.

The minor range is 36572 to 36120. Its 50% level or pivot is 36346.

The short-term range is 34547 to 36572. Its 50% level at 35560 is the nearest support level.

Daily Swing Chart Technical Forecast

The direction of the March E-mini Dow Jones Industrial Average into the close on Monday is likely to be determined by trader reaction to 36346.

Bearish Scenario

A sustained move under 36346 will indicate the presence of sellers. The first downside target is the minor bottom at 361.20. If sellers take out this level with enough momentum then look for a short-term break into the 50% level at 35560.

Bullish Scenario

A sustained move over 36346 will signal the presence of buyers. If this move generates enough upside momentum then look for a surge into the all-time high at 36572. This is a potential trigger point for an acceleration to the upside.