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E-mini Dow Jones Industrial Average (YM) Futures Technical Analysis – Traders Watching 28723 into Close

James Hyerczyk

March E-mini Dow Jones Industrial Average futures are trading lower late Thursday, but well off its lows of the day as investors assessed the latest news about the deadly coronavirus

Earlier in the session, the cash market Dow inched higher then fell as much as 244 points lower at the mid-session.

At 20:24 GMT, March Dow Jones Industrial Average futures are trading 28707, down 3 or -0.01%.

Wall Street was also under pressure after Facebook reported quarterly results that showed a sharp rise in expenses and narrowing margins. Facebook shares fell more than 6%. This loss was somewhat offset by a gain in Microsoft. The software giant beat Wall Street expectations on fourth-quarter sales and profit on the back of strong cloud revenue.

Finally, U.S. GDP grew by 2.1% in the fourth quarter, matching a Dow Jones estimate. However, the U.S. economy grew at its slowest annual rate in three years in 2019.

Daily March E-mini Dow Jones Industrial Average

Daily Technical Analysis

The main trend is up according to the daily swing chart, however, momentum is trending lower. A trade through 28405 will change the main trend to down. A move through 29362 will signal a resumption of the uptrend.

The minor trend is down. This is driving momentum lower. A trade through 28888 will change the minor trend to up. This will shift momentum to the upside.

The short-term range is 29362 to 28405. Its retracement zone at 28884 to 28996 is potential resistance. It stopped the buying on Wednesday at 28888.

The intermediate range is 28084 to 29362. Its 50% level at 28723 is a key level to watch. It is acting like resistance today.

The main range is 27297 to 29362. Its retracement zone at 28330 to 28086 is a major support area. It is controlling the near-term direction of the Dow futures contract.

Short-Term Outlook

The late session price action indicates that the direction into the close will be determined by trader reaction to the 50% level at 28723.

Overcoming 28723 could trigger a late session rally into a downtrending Gann angle at 28850, followed by the minor top at 28888 and the short-term retracement zone at 28884 to 28996.

A failure to overcome 28723 will suggest that sellers are coming in to defend against a rally. If this generates enough downside momentum then look for the selling to possibly extend into a pair of Gann angles at 28564 and 28545, followed by a 50% level at 28538.

The 50% level at 28538 is a potential trigger point for an acceleration to the downside with the next target coming in at 28330 to 28308.

This article was originally posted on FX Empire

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