E-mini Dow Jones Industrial Average (YM) Futures Technical Analysis – Primary Objective of Reversal is 30320
March E-mini Dow Jones Industrial Average futures are trading higher after recovering from an early session setback. The market opened lower on follow-through selling tied to last week’s steep decline that helped the blue chip average post its worst weekly performance since October.
After initially dropping more than 300 points on the opening, Dow futures turned around enough to post a 100 point gain. On Friday, stocks tumbled, with the three major indexes posting their worst week, and overall month, since October, as volatile trading in a number of heavily shorted companies such as GameStop and AMC Entertainment sparked worries of a bubble.
Daily Swing Chart Technical Analysis
The main trend is down according to the daily swing chart. A trade through the intraday low at 29552 will signal a resumption of the downtrend. A trade through the next swing bottom at 29318 will reaffirm the downtrend. The main trend will change to up on a move through 31188.
The main range is 25872 to 31188. Taking out the main bottom at 29318 could trigger a further break into its retracement zone at 28530 to 27903.
The intermediate range is 29318 to 31188. Its retracement zone at 30032 to 30253 is the next upside target and potential resistance area. Since the main trend is down, sellers could come in on a test of this zone.
The short-term range is 31188 to 29552. Its retracement zone at 30320 to 30563 is another potential upside target. Once again sellers could come in on a test of this area. They will be trying to form a potentially bearish secondary lower top.
Daily Swing Chart Technical Forecast
The early price action suggests the direction of the March E-mini Dow Jones industrial Average the rest of the session on Monday will be determined by trader reaction to 30032.
A sustained move under 30032 will indicate the presence of sellers. If this move creates enough downside momentum then look for the selling to possibly extend into 29552. If this level fails then look for the selling to possibly extend into the next main bottom at 29318.
Taking out 29318 could trigger an acceleration into the main 50% level at 28530.
Overtaking 30032 will signal the presence of buyers. This could trigger a labored rally with potential upside targets lined up at 30253, 30320 and 30563.
Taking out 30563 with conviction could trigger an acceleration to the upside with 31188 a potential upside target.
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