E-mini Dow Jones Industrial Average (YM) Futures Technical Analysis – Strengthens Over 26056, Weakens Under 25872

March E-mini Dow Jones Industrial Average futures finished lower on Thursday. Keeping a lid on prices were geopolitical concerns. Providing a floor was better-than-expected U.S. economic data. The price action produced an inside move. This chart pattern tends to indicate investor indecision and impending volatility. The market is also trading in a position to post its first weekly loss since the week-ending December 21.

On Thursday, March E-mini Dow Jones Industrial Average futures settled at 25929, down 79 or -0.30%.

Daily Swing Chart Technical Analysis

The main trend is up according to the daily swing chart. A trade through 26238 will signal a resumption of the uptrend. A move through 25275 will change the main trend to down.

The minor trend is also up. A trade through 25753 will change the minor trend to down. This will also shift momentum to the downside.

The short-term range is 25275 to 26238. Its retracement zone at 25757 to 25643 is the first downside target. Since the main trend is up, look for buyers to come in on the first test of this area.

The main range is 24862 to 26238. Its retracement zone at 25550 to 25388 is the next downside target area.

Daily Swing Chart Technical Forecast

Based on Thursday’s inside move, the direction of the March E-mini Dow Jones Industrial Average futures contract is likely to be determined by trader reaction to 26056 to 25872.

Bullish Scenario

A sustained move over 26056 will indicate the presence of buyers. If this can create enough upside momentum, the Dow could make a run at the main top at 26238.

Bearish Scenario

A sustained move under 25872 will signal the presence of sellers. This could drive the Dow into the short-term 50% level at 25757. This is followed closely by the minor bottom at 25753. Taking out this bottom could trigger an acceleration into the short-term Fibonacci level at 25643. This is another trigger point for an acceleration into the main 50% level at 25550.