Yahoo Finance E-mini Dow Jones Industrial Average (YM) Futures Technical Analysis – February 14, 2019 Forecast
March E-mini Dow Jones Industrial Average futures are trading higher during the pre-market session on Thursday, following the lead of cautious buyers in Asia and Europe. Underpinning the market is investor optimism over the progress of high-level trade talks between the United States and China taking place in Beijing. Before the opening bell, investors will get the opportunity to react to the last earnings data from Coca-Cola, Canada Goose and Canopy Growth. After the closing bell, all eyes will be on the earnings report from Nvidia. In between, reports on weekly jobless claims, retail sales and producer inflation will attract investor attention.
At 10:10 GMT, March E-mini Dow Jones Industrial Average futures are trading 25577, up 89 or +0.35%.
Daily Technical Analysis
The main trend is up according to the daily swing chart. The uptrend was reaffirmed earlier today when buyers took out the previous day’s high, but the move failed to attract a lot of investor attention due to thin pre-market trading volume. The main trend will change to down on a move through 24862.
Today’s session begins with the E-mini Dow trading on the bullish side of a major retracement zone at 24890 to 24234. This zone is controlling the longer-term direction of the market. It is also major support.
Daily Technical Forecast
The early price action suggests investors are being cautious about buying strength because of concerns over valuation.
Bullish Scenario
If buyers continue to take control then then look for a rally to build later in the session on a sustained move over today’s intraday high at 25622. If this move creates enough upside momentum then look for the rally to possibly extend into the steep uptrending Gann angle at 25886.
Crossing to the strong side of the steep Gann angle at 25886 will put the E-mini Dow in an extremely strong position. If this move continues over the short-run then look for an eventual test of the December 3 main top at 26110.
Bearish Scenario
The inability to take out today’s intraday high at 25622 will signal the presence of sellers. Turning lower for the session on a trade through 25488 will indicate the selling is getting stronger. This should lead to a test of the uptrending Gann angle at 25374.
Since the main trend is up, watch for buyers to come in on the initial test of 25374. If it fails as support then look for a potential acceleration to the downside with the next target angle coming in at 25118.
Closing Price Reversal Top Scenario
Given the prolonged move up in terms of price and time and today’s higher-high, turning lower for the session will put the E-mini Dow in a position to post a potentially bearish closing price reversal top. This won’t change the main trend to down, but it could lead to a 2 to 3 day correction.
This article was originally posted on FX Empire
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