E-mini Dow Trading on Weak Side of Major Retracement Zone

March E-mini Dow Jones Industrial Average futures are trading lower early Tuesday as investors remained on edge about surging oil prices and slowing economic growth amid Russia’s invasion of Ukraine.

Today’s pre-market losses follow Monday’s steep decline, which saw the Blue Chip Average drop by almost 800 points for its fifth negative session in six.

At 07:02 GMT, March E-mini Dow Jones Industrial Average futures are trading 32424, down 358 or -1.09%. On Monday, the SPDR Dow Jones Industrial Average ETF (DIA) settled at $328.48, down $7.99 or -2.38%.

In stock related news, American Express Co, Boeing Co and Nike Inc were the biggest losers, dropping 7.99%, 6.45% and 5.14%, respectively. Higher oil prices boosted shares of Chevron Corp, which gained 2.14%.

Daily Swing Chart Technical Analysis

The main trend is down according to the daily swing chart. A trade through 32167 will reaffirm the downtrend. A move through 34143 will change the main trend to up.

The main range is 30089 to 36832. The E-mini Dow is currently trading on the weak side of its retracement zone at 32665 to 33461, making it resistance.

The short-term range is 36832 to 32167. Its retracement zone at 34500 to 35050 is potential resistance.

Daily Swing Chart Technical Forecast

The direction of the March E-mini Dow Jones Industrial Average futures contract on Tuesday is likely to be determined by trader reaction to 32665.

Bearish Scenario

A sustained move under 32665 will indicate the presence of sellers. If this continues to generate enough downside momentum then look for the selling to possibly extend into the main bottom at 32167.

Taking out 32167 will reaffirm the downtrend with the March 25, 2021 main bottom at 31641 the next likely target. We could see a technical bounce on the first test of this level, but if it fails then look for the selling to possibly accelerate into the March 4, 2021 main bottom at 30089.

Bullish Scenario

A sustained move over 32665 will signal the return of buyers. If this creates enough upside momentum then look for a possible surge into the main 50% level at 33461.

Since the main trend is down, look for sellers on the first test of 33461. Overcoming it, however, could fuel a short-covering rally into the main top at 34143.