March E-mini Dow Jones Industrial Average futures are expected to open lower based on the pre-market trade. The early trading range is tight and volume is below average as investors await news on the mysterious virus that has hospitalized more than 600 and killed at least 17 people in China.
At 13:48 GMT, March E-mini Dow Jones Industrial Average futures are at 29080, down 61 or -0.21%.
Dow futures are also being pressured by Procter & Gamble shares. The stock dipped 1.9% after the company posted mixed quarterly numbers.
The World Health Organization (WHO) is set to reconvene Thursday to decide whether to declare a global health emergency. Depending on what they say, this could make or break the market today.
Daily Technical Analysis
The main trend is up according to the daily swing chart. A trade through 28362 will signal a resumption of the uptrend. The main trend will change to down on a move through the last swing bottom at 28084.
A change in the main trend is highly unlikely on Thursday, but there is room for a normal retracement and a change in the minor trend.
The minor trend is up. A trade through 28737 will change the minor trend to down. This will shift momentum to the downside.
The first minor range is 28737 to 39362. Its 50% level is 29050.
The second minor range is 28084 to 29362. Its 50% level is 28723.
Daily Technical Forecast
Based on the early price action and the current price at 29080, the direction of the March E-mini Dow Jones Industrial Average futures contract the rest of the session on Thursday is likely to be determined by trader reaction to the 50% level at 29050.
A sustained move under 29050 will indicate the presence of sellers. The daily chart indicates there is plenty of room to the downside so don’t be surprised by an acceleration into the support cluster at 28724 to 28723.
A sustained move over 29050 will signal the presence of buyers. This could trigger a labored rally into a series of downtrending Gann angles at 29170, 29266 and 29314. The latter is the last potential resistance Gann angle before the 29362 main top.
This article was originally posted on FX Empire
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