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E-mini Dow Jones Industrial Average (YM) Futures Technical Analysis – Weakens Under 28903, Strengthens Over 29001

Based on the early price action, the direction of the March E-mini Dow Jones Industrial Average the rest of the session on Friday is likely to be determined by trader reaction to an uptrending Gann angle at 29001 and a downtrending Gann angle at 28903.
James Hyerczyk

March E-mini Dow Jones Industrial Average futures are trading sharply lower shortly before the mid-session on Friday as worries over the spreading coronavirus have raised concerns over a potential global economic slowdown. The sell-off has also put the Dow in a position to close lower for the first week in three.

At 16:16 GMT, March E-mini Dow Jones Industrial Average futures are trading 28954, down 217 or -0.74%. This is up from the session low at 28871.

Traders are saying a near-term hit to corporate earnings looks unavoidable with global growth set to fall to zero or lower during the first quarter.

In economic news, IHS Markit said activity in the U.S. services sector hit its lowest level in more than six years, noting confidence was “subdued” to the coronavirus.

Daily March E-mini Dow Jones Industrial Average

Daily Technical Analysis

The main trend is up according to the daily swing chart. A trade through 28850 will change the main trend to down. The uptrend will resume if buyers can overcome the record high at 29543.

The minor trend is down. This means momentum is trending lower.

The short-term range is 28850 to 29543. Its retracement zone at 29115 to 29197 is new resistance.

The main range is 28105 to 29543. Its retracement zone at 28824 to 28654 is the next major downside target. Look for buyers on the first test of this area.

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Daily Technical Forecast

Based on the early price action, the direction of the March E-mini Dow Jones Industrial Average the rest of the session on Friday is likely to be determined by trader reaction to an uptrending Gann angle at 29001 and a downtrending Gann angle at 28903.

Bearish Scenario

A sustained move under 28903 will indicate the presence of sellers. This could trigger a break into the main bottom at 28850. Taking out this bottom will change the main trend to down with the 50% level at 28824 the next likely downside target.

Look for buyers on the first test of 28824, but if it fails then look for the selling to possibly extend into the main Fibonacci level at 28654. This is followed by an uptrending Gann angle at 28553.

Bullish Scenario

A sustained move over 29001 will signal the return of buyers. This could trigger a surge into the short-term Fibonacci level at 29115, followed by the short-term 50% level at 29197 and a downtrending Gann angle at 29923. This angle is a potential trigger point for an acceleration into another downtrending Gann angle at 29383.

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