March E-mini Dow Jones Industrial Average futures are trading higher shortly before the cash market opening, reversing earlier weakness. The rebound is being attributed to optimism over the resumption of trade talks between the United States and China. Investors are also hoping for signs of progress on Brexit. A 1-percent bounce in Chinese shares was also behind the rally. Chinese market were closed due to the week-long Lunar New Year holiday.
At 11:33 GMT, March E-mini Dow Jones Industrial Average futures are trading 25150, up 69 or +0.27%.
Daily Swing Chart Technical Analysis
The main trend is up according to the daily swing chart. However, momentum shifted to the downside last week. A trade through 25387 will signal a resumption of the uptrend. If this occurs then 24862 will become the new main bottom.
The short-term range is 25387 to 24862. Its 50% level or pivot at 25125 is controlling the direction of the index today.
On the downside, retracement level support comes in at 24890, 24802 and 24663.
Daily Swing Chart Technical Forecast
Based on the early price action, the direction of the March E-mini Dow Jones Industrial Average the rest of the session is likely to be determined by trader reaction to the short-term pivot at 25125.
A sustained move over 25125 will indicate the presence of buyers. If this creates enough upside momentum then look for the rally to possibly extend into the main top at 25387. This is the trigger point for an acceleration to the upside with 26110 the next major upside target.
A sustained move under 25125 will signal the presence of sellers. If this move can generate enough downside momentum then look for the selling to possibly extend into the major Fibonacci level at 24890. This is followed by the minor bottom at 24862 and the short-term 50% level at 24802.
This article was originally posted on FX Empire
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