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E-mini Dow Jones Industrial Average (YM) Futures Technical Analysis – Weekly Chart Strengthens Over 24890, Weakens Under 24234

March E-mini Dow Jones Industrial Average futures closed sharply higher last week after hitting its highest level since December 12. The rally was supported by strong performances in the banking and energy sectors. The banking sector was supported by strong earnings. Rising crude oil prices drove up the energy sector. A surge late in the week was fueled by the news that the United States and China may have offered concessions at its mid-level meetings in early January.

Last week, March E-mini Dow Jones Industrial Average futures settled at 24687, up 737 or +2.99%.

Weekly March E-mini Dow Jones Industrial Average
Weekly March E-mini Dow Jones Industrial Average

Weekly Technical Analysis

The main trend is down according to the weekly swing chart. However, momentum has been trending higher since the formation of the closing price reversal bottom at 21452 the week-ending December 28.

A trade through 26110 will change the main trend to up. A move through 21452 will signal a resumption of the downtrend.

The main range is 27015 to 21452. The market ended the week inside its retracement zone at 24234 to 24890. This zone is controlling the near-term direction of the index.

Weekly Technical Forecast

Based on last week’s close at 24687 and the upside momentum into the close, the direction of the March E-mini Dow Jones Industrial Average this week is likely to be determined by trader reaction to the main Fibonacci level at 24890.

Bullish Scenario

A sustained move over 24890 will indicate the presence of buyers. This could trigger a quick move into a pair of downtrending Gann angles at 24967 and 25214. The latter is the trigger point for an acceleration to the upside with the next target angle coming in at 25662.

Bearish Scenario

The inability to overcome and a sustained move under 24890 will signal the presence of sellers. If this move creates enough downside momentum then look for the selling to extend into the main 50% level at 24234. The market may hold on the first test of this level, but look for the start of a steep break if this support level fails. The daily chart indicates there is plenty of room to the downside with the next target angle coming in at 23500.

This article was originally posted on FX Empire

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