Yahoo Finance E-mini Dow Jones Industrial Average (YM) Futures Technical Analysis – March 22, 2019 Forecast
June E-mini Dow Jones Industrial Average futures are trading lower Friday in response to global economic growth fueled by weaker-than-expected manufacturing data out of Europe and the Federal Reserve’s shift to a more-dovish outlook on the U.S. economy. A steep drop in Nike shares is also pressuring the Dow. Later today, traders will get an opportunity to react to the latest Flash Manufacturing and Services data from the United States. A miss to the downside could trigger a volatile sell-off.
At 13:13 GMT, June E-mini Dow Jones Industrial Average futures are trading 25846, down 166 or -0.63%.
Daily Technical Analysis
The main trend is down according to the daily swing chart. Tuesday’s closing price reversal top at 26145 is also pressuring the Dow. A trade through 26145 will negate the closing price reversal top and change the main trend to up. A move through 25608 will signal a resumption of the downtrend.
The short-term range is 26145 to 25608. The Dow is currently straddling its retracement zone at 25877 to 25940. Trader reaction to this zone will determine the near-term direction of the market.
The main range is 25246 to 26145. Its retracement zone at 25696 to 25589 is the primary downside target. This zone stopped the selling on Thursday at 25608.
Daily Technical Forecast
Based on the early price action, the direction of the June E-mini Dow Jones Industrial Average on Friday is likely to be determined by trader reaction to the short-term 50% level at 25877.
Bullish Scenario
A sustained move over 25877 will indicate the presence of buyers. This could lead to an early labored rally with potential resistance at 25566, 25940 and 26049.
Overtaking 26049 could trigger an acceleration to the upside with the next potential upside target a short-term downtrending Gann angle at 26097. This is followed by a pair of downtrending Gann angles at 26121 and 26187.
Bearish Scenario
A sustained move under 25877 will signal the presence of sellers. This could drive the Dow into a steep downtrending Gann angle at 25953. Crossing to the weak side of this angle could lead to a test of the 50% level at 25696. We could see a technical bounce on the first test of the 50% level at 25696. This is a potential trigger point for an acceleration into yesterday’s low at 25608, a Fibonacci level at 25589 and an uptrending Gann angle at 25406.
This article was originally posted on FX Empire
