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E-mini S&P 500 Index (ES) Futures Technical Analysis – Major Downside Target Zone is 3204.25 – 3172.75

James Hyerczyk

March E-mini S&P 500 Index futures rose on Monday, but the inside trading range did nothing to change the chart pattern. Often, it’s just an indication of investor indecision and impending volatility. Today’s rally helped the benchmark index recover some of the losses from the previous session’s steep plunge, but investors remained wary about the technical bounce as coronavirus fears lingered.

At 20:53 GMT, March E-mini S&P 500 Index futures are trading 3245.50, up 21.50 or +0.66%.

On the positive side, the major averages reached their session highs after the Institute for Supply Management said its manufacturing gauge showed activity in the sector expanded. On the negative side, stocks gave back some of their gains after Carnival confirmed one of its guests tested positive for coronavirus six days after leaving one of its ships.

Daily March E-mini S&P 500 Index

Daily Technical Analysis

The main trend is down according to the daily swing chart. A trade through 3297.50 will change the main trend to up. A move through 3212.75 will signal a resumption of the downtrend. A trade through 3181.00 will reaffirm the downtrend.

The main range is 3071.00 to 3337.50. Its retracement zone at 3204.25 to 3172.75 is the next major downside target. Buyers could come in on the first test of this zone, but if it fails, a steep drop could follow.

The short-term range is 3337.50 to 3212.75. Its retracement zone at 3275.25 to 3290.00 is the nearest resistance area.

Short-Term Outlook

The index is caught inside a trading range formed by Gann angles and retracement levels. The longer it stays in the range, the greater the chances of a volatile breakout.

On the upside, potential resistance is a downtrending Gann angle at 3273.50, a short-term 50% level at 3275.25, a short-term Fibonacci level at 3290.00 and a main top at 3297.50.

On the downside, potential support is an uptrending Gann angle at 3235.00, an uptrending Gann angle at 3215.00 and a minor low at 3212.75.

This article was originally posted on FX Empire