March E-mini Dow Jones Industrial Average futures are trading lower shortly after the opening on Thursday. The selling pressure is being fueled by concerns over a weakening global economy. Earlier today, the European Commission (EU) cut it growth outlook for the Euro Zone. The Bank of England also cut its 2019 outlook.
At 18:08 GMT, March E-mini Dow Jones Industrial Average futures are trading 25057, down 270 or -1.07%.
Daily Swing Chart Technical Analysis
The main trend is up according to the daily swing chart, however, momentum is starting to shift to the downside. On Wednesday, the Dow stopped a little short of forming a potentially bearish closing price reversal top. A trade under 24996 will turn the Dow lower for the week.
A trade through 25387 will reaffirm the uptrend. The market isn’t close to turning the main trend to down, but it is still inside the window of time for a closing price reversal top.
The minor trend is also up. A trade through 24924 will change the minor trend to down. This will also shift momentum to the downside.
The minor range is 24924 to 25387. Its 50% level or pivot is 25156.
The major retracement zone is 24890 to 24234. This zone is controlling the longer-term direction of the market.
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 minor pivot at 25156.
A sustained move over 25156 will indicate the return of buyers. If this creates enough upside momentum then look for buyers to make a run at 25387. Taking out this level will signal a resumption of the uptrend. This would put the market back on course for an eventual test of the main top at 26110.
A sustained move under 25156 will signal that the selling pressure is getting stronger. If this move creates enough downside momentum then watch for a potential acceleration into the minor bottom at 24924, followed closely by the major Fibonacci level at 24890.
The Fib level at 24890 is also a potential trigger point for an acceleration into the major 50% level at 24234.
Please let us know what you think in the comments below.
This article was originally posted on FX Empire
More From FXEMPIRE:
- Gold Price Futures (GC) Technical Analysis – Safe-Haven Buying Helps Market Recover from Lows
- Gold Price Prediction – Price Rebound Despite Rally in the Dollar
- GBP/JPY Price Forecast – British pound find support again
- Silver Price Forecast – Silver markets flat
- Cautious BoE Warns on “Fog of Brexit”
- Renewed U.S.-China Trade Fears Shake-Up Financial Markets