E-mini Dow Jones Industrial Average (YM) Futures Technical Analysis – Taking Out 29624 Changes Trend to Down

March E-mini Dow Jones Industrial Average futures are trading lower and in a position to post a potentially bearish closing price reversal top after touching a record high and giving back all of its earlier gains. After the launch of a COVID-19 vaccine campaign in the United States, investors turned into sellers, which suggests a “buy the rumor, sell the fact” situation.

At 21:14 GMT, March E-mini Dow Jones Industrial Average futures are trading 29806, down 129 or -0.43%.

The Dow was weighed down by entertainment giant Walt Disney which fell after BMO Capital Markets downgraded the stock. On Friday, Disney shares were boosted to an all-time high after the company revealed its plans to create more content, add more subscribers and raise user fees.

Daily March E-mini Dow Jones Industrial Average

Daily Swing Chart Technical Analysis

The main trend is up according to the daily swing chart, but the formation of a closing price reversal top indicates that momentum may be getting ready to shift to the downside.

A trade through 30240 will signal a resumption of the uptrend, while a move through 29624 will change the main trend to down.

The minor range is 29350 to 30240. Trader reaction to its 50% level at 29795 could determine the direction of the market on Tuesday.

The short-term range is 25872 to 30240. If the main trend changes to down then we could see the start of a steep correction with its retracement zone at 28056 to 27541 the primary downside target. This is also a value zone so buyers could come in on the first test of this area.

Short-Term Outlook

Based on Monday’s price action, the direction of the March E-mini Dow Jones Industrial Average on Tuesday is likely to be determined by trader reaction to 29795.

The E-mini Dow is also forming a closing price reversal top. This won’t change the main trend to down, but if confirmed, it could trigger the start of a 2 to 3 day correction.

The main trend will also change to down on a move through 29624. A trade through the next swing bottom at 29350 will reaffirm the downtrend. This price is also a trigger point for a potential acceleration to the downside with the short-term 50% level at 28056 the next likely downside target.