March E-mini Dow Jones Industrial Average futures are under pressure on Friday after the second U.S. case of the deadly coronavirus was confirmed, stoking concerns over the sickness’ impact on the global economy.
Fears over the possible impact of the coronavirus subdued stocks this week, putting the Dow in a position to post a potentially bearish closing price reversal top. Additionally, the blue chip index is on pace for its biggest one-day loss since October.
At 20:16 GMT, March E-mini Dow Jones Industrial Average futures are trading 28972, down 155 or -0.51%.
Daily Technical Analysis
The main trend is up according to the daily swing chart, however, momentum is trending lower. The main trend will change to down on a trade through 28084. A move through 29362 will signal a resumption of the uptrend.
The minor trend is down. The trend turned down earlier today on a trade through 28924. This shifted the momentum to the downside. Taking out 29241 change the minor trend to up.
The minor range is 28737 to 29362. Its 50% level at 29050 is controlling the direction of the Dow today.
The second minor range is 28084 to 29362. Its 50% level at 28723 is the next potential downside target.
The third minor range is 27715 to 29362. Its 50% level at 28538 is another potential target.
The main range is 27297 to 29362. Its retracement zone at 28330 to 28086 is the primary downside target.
Daily Technical Forecast
Based on the current price at 28972, the nearest resistance is the minor pivot at 29050, followed closely by a downtrending Gann angle at 29106. Overtaking this angle will indicate the buying is getting stronger with the next target angle coming in at 29234. This stopped the rally earlier today.
On the downside, the key angle to watch into the close comes in at 28788. The Dow stopped just about this angle earlier today.
If 28788 fails then look for the selling to extend into the 50% level at 28723. This is a potential trigger point for an acceleration into the next 50% level at 28538.
This article was originally posted on FX Empire
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