March E-mini Dow Jones Industrial Average are called higher based on the pre-market trade. Although investors are still monitoring the impact of the coronavirus outbreak, most are leaning toward the positive side after a Chinese official said on Tuesday that the threat is likely to end by the end of March. Furthermore, there are also signs that the virus may have peaked at the end of January.
At 12:05 GMT, March E-mini Dow Jones Industrial Average futures are trading 29357, up 128 or +0.44%.
Positive comments from U.S. Federal Reserve Chairman Jerome Powell on Tuesday are also underpinning the market. He told a Congressional committee that the American Economy is in a good place, but that the central bank is “closely monitoring” the potential global economic fallout from the virus.
Daily Technical Analysis
The main trend is up according to the daily swing chart. A trade through 29475 will signal a resumption of the uptrend. It will also produce a new record high.
A trade through 28105 will change the main trend to down. However, the main bottom will move up to 28850 if 29475 is taken out.
The minor trend is up according to the daily swing chart. A trade through 28850 will change the minor trend to down. This will shift momentum to the downside.
The minor range is 29475 to 28850. Its 50% level or pivot is 29163. This level is controlling the near-term direction of the Dow.
The short-term range is 28105 to 29475. Its retracement zone at 28790 to 28628 represents value.
Daily Technical Forecast
Based on the early price action and the current price at 29357, the direction of the March E-mini Dow Jones Industrial Average the rest of the session on Wednesday is likely to be determined by trader reaction to the downtrending Gann angle at 29347.
A sustained move over 29347 will indicate the presence of buyers. This could trigger a rally into the next downtrending Gann angle at 29411. This is the last potential resistance angle before the 29475 main top. Taking out this level could trigger an acceleration to the upside.
A sustained move under 29347 will signal the presence of sellers. This could lead to a test of the next downtrending Gann angle at 29219.
If 29219 fails as support then look for the selling to possibly extend into the pivot at 29163, followed closely by an uptrending Gann angle at 29129. This is a potential trigger point for an acceleration to the downside.
This article was originally posted on FX Empire
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