March E-mini Dow Jones Industrial Average futures are trading higher at the mid-session after reaching another record high earlier in the day. The U.S. and China signed their trade deal and corporate earnings continued to impress. Helping investor sentiment the most, however, were comments from White House economic advisor Larry Kudlow, who said the Trump administration would unveil more tax cuts later this year.
At 18:59 GMT, March E-mini Dow Jones Industrial Average futures are at 29001, up 68 or +0.24%.
At times the buying looked a little tentative. This is because of skepticism over the trade deal. Some investors think it’s unenforceable. Some believe that China won’t be able to deliver on its promises. Furthermore, the extension of the tariffs until after the 2020 elections suggests the global economy is likely to continue to struggle.
Daily Technical Analysis
The main trend is up according to the daily swing chart. The uptrend was reaffirmed earlier today when buyers took out the previous minor top at 29022.
The main trend will change to down on a move through the last swing bottom at 28084. This is highly unlikely, however, the Dow is still in a position to post a potentially bearish closing price reversal top. This won’t change the trend to down, but it could lead to a 2 to 3 day break.
The minor trend is also up. A trade through 28737 will change the minor trend to down. This will shift momentum to the downside.
The short-term range is 28084 to 29090. Its retracement zone at 28587 to 28468 is the next potential downside target zone.
Daily Technical Forecast
Based on the early price action and the current price at 29001, the direction of the March E-mini Dow Jones Industrial Average into the close on Wednesday is likely to be determined by trader reaction to yesterday’s close at 28934.
A sustained move over 28934 will indicate the presence of buyers. The first target is an uptrending Gann angle at 29153. Overtaking this level could lead to a test of another uptrending Gann angle at 29251. Crossing to the strong side of the angle at 29251 will put the Dow in an extremely bullish position.
A sustained move under 28934 will signal the presence of sellers. The first downside target is a minor bottom at 28737, followed by a steep uptrending Gann angle at 28724.
If 28724 fails as support then look for the selling to possibly extend into the short-term 50% level at 28587.
This article was originally posted on FX Empire
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