E-mini Dow Jones Industrial Average (YM) Futures Technical Analysis – Reaction to 28531 – 28576 Will Set Tone

March E-mini Dow Jones Industrial Average futures finished higher on Tuesday, the last trading day of the year. The minor reversal to the upside suggests new investors came into the market ahead of the new year. The two-day break from last week’s record high shifted momentum to the downside, but did not change the trend.

On Tuesday, March E-mini Dow Jones Industrial Average futures settled at 28508, up 68 or +0.24%.

Daily March E-mini Dow Jones Industrial Average

Daily Swing Chart Technical Analysis

The main trend is up according to the daily swing chart. A trade through 28721 will signal a resumption of the uptrend. The main trend will change to down on a trade through the last swing bottom at 27297.

The main trend may be up, but the momentum shifted to the downside with the formation of the closing price reversal top on December 27 and the subsequent confirmation on December 30.

The first minor range is 28721 to 28341. Its retracement zone is 28531 to 28576. This zone is important because it will determine whether a secondary lower top is formed or if we’re going to see a new high over the short-run.

The second minor range is 27715 to 28721. Its retracement zone at 28218 to 28099 is a potential downside target. Since the main trend is up, buyers could step in on a test of this area.

The main range is 27297 to 28721. Its retracement zone at 28009 to 27841 is a value area.

Short-Term Outlook

Watch the price action and read the order flow on a test of 28531 to 28576 on Thursday. Aggressive counter-trend sellers could come in on a test of this zone. They are going to try to stop any rally, while trying to form a potentially bearish secondary lower top.

Meanwhile, bullish trend traders are going to try to take out this retracement zone in an effort to make 28341 a new higher main bottom.

This article was originally posted on FX Empire

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