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E-mini Dow Jones Industrial Average (YM) Futures Technical Analysis – Strong Over 28882, Weak Under 28734

By:
James Hyerczyk
Updated: Feb 5, 2020, 14:03 UTC

Based on the early price action and the current price at 29034, the direction of the March E-mini Dow Jones Industrial Average the rest of the session on Wednesday is likely to be determined by trader reaction to the downtrending Gann angle at 28978.

E-mini Dow Jones Industrial Average (YM) Futures Technical Analysis – Strong Over 28882, Weak Under 28734

March E-mini Dow Jones Industrial Average futures are expected to open higher based on the pre-market trade as aggressive investors continue to buy while shrugging off concerns over the spread of the coronavirus.

The blue chip average was nearly flat in overnight trading when Reuters reported a possible break-through in treating people with the deadly virus. This spiked the Dow higher. The market was also boosted when ADP and Moody’s Analytics reported that private payrolls rose by 291,000 in January. This was well-above the 150,000 forecast.

At 13:42 GMT, March E-mini Dow Jones Industrial Average futures are trading 29034, up 245 or +0.85%.

Later in the session at 15:00 GMT, investors will get the opportunity to react to the latest report on ISM Non-Manufacturing PMI. It is expected to come in at 55.1, slightly better than the previously reported 55.0.

Daily March E-mini Dow Jones Industrial Average

Daily Technical Analysis

The main trend is up according to the daily swing chart. The trend changed to up when buyers took out the previous main top at 28888. A move through 28105 will change the main trend to down. The next major upside target is the all-time high at 29362.

The short-term range is 29362 to 28105. Its retracement zone at 28734 to 28882 is new support.

The intermediate range is 27297 to 29362. Its retracement zone at 28330 to 28086 is also support.

Daily Technical Forecast

Based on the early price action and the current price at 29034, the direction of the March E-mini Dow Jones Industrial Average the rest of the session on Wednesday is likely to be determined by trader reaction to the downtrending Gann angle at 28978.

Bullish Scenario

A sustained move over 28978 will indicate the presence of buyers. The next two upside targets are downtrending Gann angles at 29170 and 29266. The latter is the last potential resistance angle before the 29362 main top.

Bearish Scenario

A sustained move under 28978 will signal the presence of sellers. This could lead to a retest of the short-term retracement zone at 28882 to 28734.

Look for the selling pressure to increase on a move under 28734 with targets coming in at 28594 and 28426.

About the Author

James is a Florida-based technical analyst, market researcher, educator and trader with 35+ years of experience. He is an expert in the area of patterns, price and time analysis as it applies to futures, Forex, and stocks.

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