E-mini Dow Jones Industrial Average (YM) Futures Technical Analysis – Strengthens Over 28637, Weakens Under 28622

March E-mini Dow Jones Industrial Average futures are trading lower on Tuesday after giving up earlier gains. Investors continue to worry after an escalation of the conflict between the United States and China. Their biggest fear is that an attack on the oil supply will drive prices high enough to trigger a global recession. This would have a negative impact on corporate earnings.

At 15:35 GMT, March E-mini Dow Jones Industrial Average is trading 28579, down 63 or -0.22%.

Daily 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 January 3.

The main trend will change to down on a trade through 28341. A move through 28893 will negate the closing price reversal top and signal a resumption of the uptrend.

The minor range is 28893 to 28351. Its pivot at 28622 is controlling the price action of the Dow today. Trader reaction to this level will determine the direction. This level is important because buyers are going to try to drive the market through this level in an effort to hit the all-time high at 28893. Sellers are going to try to form a secondary lower top that could lead to a change in trend.

The second minor range is 27715 to 28893. Its retracement zone at 28304 to 28165 is the next downside target. Buyers could come in on a test of this area.

The main range is 27297 to 28893. Its retracement zone at 28095 to 27907 is a value area. A test of this area should bring in the buyers.

Daily Technical Forecast

Based on the early price action and the current price at 28579, the direction of the March E-mini Dow Jones Industrial Average the rest of the session on Tuesday is likely to be determined by trader reaction to the price cluster at 28622 and 28637.

Bearish Scenario

A sustained move under 28622 will indicate the presence of sellers. If this move creates enough downside momentum then look for the selling to possibly extend into the lows at 28351 and 28341. This is followed by a 50% level at 28304 and an uptrending Gann angle at 28291.

Bullish Scenario

A sustained move over the downtrending Gann angle at 28637 will signal the presence of buyers. This could trigger a labored rally with a series of potential resistance angles coming in at 28765, 28769, 28829 and 28867.

The angle at 28867 is the last potential resistance angle before the 28893 main top.