E-mini Dow Jones Industrial Average (YM) Futures Analysis – February 22, 2017 Forecast
March E-mini Dow Jones Industrial Average futures are trading flat shortly ahead of the cash market opening. Volume was light during the pre-market session and this could continue early Wednesday as investors await the release of the minutes from the Fed’s monetary policy meeting held in February. Traders should watch for volatility at 1900 GMT with the release of the minutes.
Technical Analysis
The main trend is up according to the daily swing chart. A trade through 20735 will signal a resumption of the uptrend. There is no upside target, but investors should be aware of the possibility of a closing price reversal top.
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The main range is 19713 to 20735. Its retracement zone at 20224 to 20103 is the primary downside target.
Forecast
Based on the current price at 20672, the direction of the Dow futures contract today is likely to be determined by trader reaction to uptrending angle at 20673. This angle, moving up at a rate of 64 points per day from the January 31 bottom at 19713, has provided guidance for 15 sessions.
A sustained move over 20672 will signal the presence of buyers. The size of the rally, however, will be determined by how buyers react to 20735.
A sustained move under 20672 will indicate the presence of sellers. The daily chart is wide open to the downside under this angle with 20224 to 20103 the next target.