E-mini Dow Jones Industrial Average

E-mini Dow Jones Industrial Average (YM) Futures Technical Analysis – February 13, 2019 Forecast

March E-mini Dow Jones Industrial Average futures are trading higher during the pre-market session. Optimism over a U.S.-China trade deal is the primary catalyst behind the early strength. Traders are also reacting to a stronger trade in Asia and Europe. President Trump contributed to the optimistic outlook when he said on Tuesday that he might be open to postpone the current March 1 deadline so that both sides could reach a deal.

At 12:32 GMT, March E-mini Dow Jones Industrial Average futures are trading 25480, up 74 or +0.30%. This is down from 25533.

E-mini Dow Jones Industrial Average
Daily March E-mini Dow Jones Industrial Average

Daily Technical Analysis

The main trend is up according to the daily swing chart. The uptrend was reaffirmed on Tuesday when buyers took out the swing top at 25387. In the cash market, the Dow crossed to the bullish side of the 200-day moving average for the first time since December 3.

The Dow is also trading on the bullish side of a major retracement zone at 24890 to 24234. This zone is new support.

Daily Technical Forecast

Based on the early price action, the direction of the March E-mini Dow Jones Industrial Average futures contract is likely to be determined by trader reaction to the previous main top at 25387.

Bullish Scenario

A sustained move over 25387 will indicate the presence of buyers. If this creates enough upside momentum then look for a drive into a steep uptrending Gann angle at 25630.

Overtaking 25630 will put the Dow in a bullish position. This will put the market on course for a test of the December 3 main top at 26110 on February 15.

Bearish Scenario

A sustained move under 25387 will signal the presence of sellers. The next downside target is the uptrending Gann angle at 25246. Since the main trend is up, look for buyers to come in on a test of this angle. If this angle fails as support then look for the selling to extend into the next uptrending Gann angle at 25054.

Published by

James Hyerczyk

James A. Hyerczyk has worked as a fundamental and technical financial market analyst since 1982. His technical work features the pattern, price and time analysis techniques of W.D. Gann.