E-mini Dow Jones Industrial Average (YM) Futures Technical Analysis – Upside Target Remains 27109 – 27683

March E-mini Dow Jones Industrial Average futures are up sharply late in the session on Wednesday. Most of the gains took place early in the cash market session on the back of strong overnight gains. The day session has been pretty tame with an upside bias driven by above average volume.

At 19:17 GMT, March E-mini Dow Jones Industrial Average futures are trading 26722, up 842 or +3.26%.

Some analysts are saying the rally is being fueled by major victories from former Vice President Joe Biden during Super Tuesday primaries. This led to a massive rally within the health-care sector.

The major averages also got a boost from strong economic data. The U.S. services sector expanded at a faster-than-expected pace in February, data from the Institute for Supply Management (ISM) showed. ADP and Moody’s Analytics said private payrolls jumped by 183,000 last month.

The Fed’s Beige Book report on Wednesday showed the U.S. economic activity expanded at a “modest to moderate” rate over the past week, citing coronavirus as a risk to the outlook.

Daily Technical Analysis

The main trend is down according to the daily swing chart. A trade through 29543 will change the main trend to up. A move through 24675 will signal a resumption of the downtrend. Today’s inside move suggests investor indecision and impending volatility.

The major support zone is 25498 to 24543. It stopped the selling at 24675 on Friday.

The short-term range is 29543 to 24675. Its retracement zone 27109 to 27683 is the first upside target and potential resistance.

Since the main trend is down, sellers could come in on a test of this zone in an effort to form a secondary lower bottom. Buyers are going to try to take out this zone and establish new higher support.

The minor range is 24675 to 27059. Its retracement zone at 25867 to 25586 provided support earlier today.

Daily Technical Forecast

Based on the early price action and the current price at 26722, 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 a downtrending Gann angle at 26215 and an uptrending Gann angle at 26211.

Bullish Scenario

A sustained move over 26215 will indicate the presence of buyers. If this creates enough upside momentum then look for the rally to continue into 27059 to 27109.

Look for sellers on the first test of 27059 to 27109. Taking out 27109 could trigger an acceleration to the upside with the next target the Fibonacci level at 27683, followed by a downtrending Gann angle at 27879.

Bearish Scenario

A sustained move under 26211 will signal the presence of sellers. This could lead to a retest of 25867 to 25586, followed by 25498 and 25443.

Side Notes

Continue to look for a possible two-sided trade until buyers takeout out 27683 or sellers take out 25498.