March E-mini Dow Jones Industrial Average futures are expected to open lower Thursday on renewed concerns about the spread of the coronavirus. The news dampened the optimistic viewpoint shared by investors throughout the week that the virus outbreak had peaked.
Investors continue to monitor news on the coronavirus outbreak after China said it confirmed 15,152 new cases and 254 additional deaths. Those figures include the ones reported earlier by Hubei province under its new diagnosis methodology. That brings the country’s total death toll to 1,367 as the number of people infected jumped to nearly 60,000, according to the Chinese government.
At 11:46 GMT, March E-mini Dow Jones Industrial Average futures are trading 29312, down 211 or -0.71%.
Daily Technical Analysis
The main trend is up according to the daily swing chart. A trade through 29543 will signal a resumption of the uptrend. A move through 28850 will change the main trend to down.
The short-term range is 28850 to 29543. Its retracement zone at 28824 to 28654 is the first downside target. Since the main trend is up, look for buyers on the first test of this zone.
The main range is 28105 to 29543. Its retracement zone at 28824 to 28654 is the next major downside target.
Daily Technical Forecast
Based on the early price action, the direction of the March E-mini Dow Jones Industrial Average on Thursday is likely to be determined by trader reaction to Wednesday’s close at 29523.
Earlier in the session, the Dow posted a higher-high then turned lower for the session. This puts it in a position to form a potentially bearish closing price reversal top on the daily chart. If confirmed, this could lead to the start of a 2 to 3 day correction.
After turning lower for the session, the Dow reached an uptrending Gann angle at 29257. Since the trend is up, buyers came in on the test of this angle. If this angle fails as support then look for the selling to extend into the short-term retracement zone at 29197 to 29115. Once again watch for a technical bounce on the first test of this zone.
Taking out the short-term Fibonacci level at 29115 could trigger an acceleration to the downside with the next likely targets a main bottom at 28850 and the main 50% level at 28824.
Holding the steep uptrending Gann angle at 29257 could mean that buyers are returning. If this creates enough upside momentum then look for the rally to possibly extend into a minor pivot at 29394. Overtaking this pivot could trigger a further move into 29523 to 29543.
Taking out 29543 will signal a resumption of the uptrend. This could trigger an acceleration to the upside.
This article was originally posted on FX Empire