E-mini Dow Jones Industrial Average (YM) Futures Technical Analysis – Weekly Chart Shows No Major Support Until 24890

March E-mini Dow Jones Industrial Average futures are trading lower for the week, putting the blue chip index in a position to finish the week lower for the first time since the week-ending December 21. The catalyst behind the selling pressure is concern over U.S.-China trade relations.

Some say the Dow is weakening because a trade deal has been priced in. Others are taking protection against the possibility President Trump decides to walk away from the negotiating table.

At 03:00 GMT, March E-mini Dow Jones Industrial Average futures are trading 25634, down 32 or 0.12%.

Weekly Technical Analysis

The main trend is up according to the weekly swing chart. It turned up last week when buyers took out the previous main top at 26110, however, it stopped short of the 26300 main top from the week-ending November 9.

The Dow is not in a position to change the main trend to down, but there is room for a 50% to 61.8% correction of the 10-week rally.

The minor trend is also up, but a new minor top has formed at 26238.

The main range is 27015 to 21452. Its retracement zone at 24890 to 24234 is the next major downside target.

Weekly Technical Forecast

The weekly chart shows there is plenty of room to the downside with the first target the Fibonacci level at 24890. Since the main trend is up, look for buyers on the first test of this level. If it fails then look for the selling to possibly extend into a 50% level at 24234, followed by a steep uptrending Gann angle at 24012.

On the upside, the first resistance is the minor top at 26238. This is followed by a downtrending Gann angle at 26311. Overtaking this level will indicate the buying is getting stronger with a pair of downtrending Gann angles at 26663 and 26839 the next likely upside targets. The latter is the last potential resistance angle before the 27015 main top.