E-mini Dow Jones Industrial Average (YM) Futures Technical Analysis – Upside Momentum Continuing into Close
March E-mini Dow Jones Industrial Average futures are trading at their highest level of the session late Wednesday after posting a dramatic reversal to the upside, following a steep sell-off Tuesday evening.
The benchmark index rose sharply after President Donald Trump spoke about an attack by Iran on an Iraqi airbase that houses American troops, which had led to a massive sell-off in overnight trading.
At 21:00 GMT, March E-mini Dow Jones Industrial Average futures are trading 28788, up 262 or +0.91%.
At their worst levels in overnight trading, S&P 500 Index futures were down more than 1.6% along with NASDAQ 100 futures. Dow futures lost more than 400 points overnight.
Daily Technical Analysis
The main trend is down according to the daily swing chart. The trend turned down when sellers took out a pair of lows at 28351 and 28341. A trade through 28893 will change the main trend to up.
The short-term range is 28893 to 28084. Its 50% level at 28489 is controlling the short-term direction of the Dow. Trading above this level is helping to generate a strong upside bias into the close.
The intermediate range is 27715 to 28893. Its retracement zone at 28304 to 28165 is support.
The main range is 27297 to 28893. Its retracement zone at 28095 to 27907 is support. It also represents value so it came as no surprise on Wednesday when buyers came in at 28084, just slightly below the key 50% level.
Late in the session, a downtrending Gann angle at 28797 is providing some resistance. Overcoming this angle could lead to a test of a potential resistance cluster at 28833 to 28845.
Taking out 28845 will indicate the buying is getting stronger. This could trigger a rally into the all-time high at 28893. Taking out this level will signal a resumption of the uptrend.
Crossing to the strong side of an uptrending Gann angle at 28931 will put the March E-mini Dow Jones Industrial Average in a bullish position.
On the downside, the inability to overtake 28797 will signal the presence of sellers. A break under the downtrending Gann angle at 28701 will indicate the selling is getting stronger. This could trigger a late session break into a potential support cluster at 28509 to 28489.