Yahoo Finance E-mini Dow Jones Industrial Average (YM) Futures Technical Analysis – February 15, 2019 Forecast
March E-mini Dow Jones Industrial Average futures are under pressure on Friday, following the lead of the weaker Asian and European markets. The catalysts behind the selling pressure are Thursday’s weaker-than-expected U.S. retail sales data and unexpected jump in weekly unemployment claims.
In other news, earnings season continues with Allianz, Deere and PepsiCo reporting before the opening bell. In Beijing, Chinese President Xi Jinping will meet with U.S. delegates, including Treasury Secretary Steven Mnuchin and U.S. Trade Representative Robert Lighthizer. In politics, President Trump is expected to sign legislation that prevents a government shutdown, but he may cause some turmoil by also declaring a national emergency to try to build a wall on the border with Mexico.
At 10:02 GMT, March E-mini Dow Jones Industrial Average futures are trading 25382, down 45 or -0.17%.
Daily Technical Analysis
The main trend is up according to the daily swing chart. However, momentum shifted to the downside with the formation of a closing price reversal top on Thursday and its confirmation earlier today.
A trade through 25622 will negate the closing price reversal top and signal a resumption of the uptrend. The main trend will change to down on a trade through 24862.
The short-term range is 24862 to 25622. Its retracement zone at 25242 to 25152 is the primary downside target. Since the main trend is up, look for a technical bounce on the first test of this range.
Daily Technical Forecast
Based on the early price action, if sellers take control then look for the break to continue into the 50% level at 25242. This is followed by an uptrending Gann angle at 25182 and a Fibonacci level at 25152.
Since the main trend is up, a test of any of these levels could attract buyers. However, if 25152 fails as support, we could see an acceleration into the next support angle at 25022. This is the last potential support angle before the major Fibonacci level at 24890 and the main bottom at 24862.
If the buying is strong enough to fuel a rebound rally then look for the move to extend into a pair of Gann angles at 25494 and 25502. Since momentum shifted to the downside, sellers could come in on a test of this area. They are going to try to form a secondary lower top. Additional resistance angles come in at 25558 and 25590. The latter is the last resistance angle before the 25622 main top.
This article was originally posted on FX Empire
