E-mini Dow Jones Industrial Average (YM) Futures Technical Analysis – Needs to Overcome 28355 to Sustain Steep Upside Momentum
March E-mini Dow Jones Industrial Average futures are trading better shortly before the close on Tuesday, but the price action can best be described as lackluster. The broader-based S&P 500 and NASDAQ Composite hit record highs earlier in the session, but the Dow has lagged behind, while posting an inside move. The price action suggests investor indecision and impending volatility.
At 19:27 GMT, March E-mini Dow Jones Industrial Average futures are trading 28306, up 43 or +0.15%.
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Some say traders are concerned over the lack of details from the U.S.-China trade deal. Others are saying renewed concerns over a messy Brexit encouraged investors to lighten up on the long side. In my opinion, value may be coming into play with investors unwilling to buy aggressively at current price levels.
Daily Technical Analysis
The main trend is up according to the daily swing chart. A trade through 28350 will signal a resumption of the uptrend.
The main trend will change to down on a trade through 27297. This is not likely today. However, taking out 28350 then turning lower for the session will form a potentially bearish closing price reversal top.
The minor trend is also up. A trade through 27715 will change the minor trend to down. This will also shift momentum to the downside.
Daily Technical Forecast
Based on the early price action, the direction of the March E-mini Dow Jones Industrial Average futures contract into the close is likely to be determined by trader reaction to the uptrending Gann angle at 28355.
Bullish Scenario
A sustained move over 28355 will indicate the buying is getting stronger. If this triggers an acceleration to the upside then buyers may take a run at the next steep uptrending Gann angle at 28577.
Bearish Scenario
A sustained move under 28355 will signal that the buying is getting weaker or the selling is getting stronger. Taking out yesterday’s close at 28263 will put the Dow in a position to form a closing price reversal bottom. This could trigger a steep sell-off into the next uptrending Gann angle at 28035.
Side Notes
Taking out 28350 then closing below 28263 will form a closing price reversal top. If confirmed on Wednesday, this could trigger the start of a 2 to 3 day correction. It will not signal a change in trend.