E-mini Dow Jones Industrial Average (YM) Futures Analysis – Closing Under 26604 Will Form Weekly Closing Price Reversal Top

March E-mini Dow Jones Industrial Average futures finished slightly higher on Thursday after trading down to its lowest level since January 19. The early session sell-off helped form a new main top.

A close below 26604 will produce a potentially bearish weekly closing price reversal top.

Daily Swing Chart Analysis

The main trend is up according to the daily swing chart. However, momentum shifted to the downside with the formation of a closing price reversal top on January 29 at 26684.

A trade through 26684 will negate the closing price reversal top and signal a resumption of the uptrend.

A move through 25922 will indicate the selling is getting stronger.

The minor range is 26684 to 25922. Its retracement zone at 26303 to 26393 is acting like resistance.

The main range is 24086 to 26684. If there is a steep break then its retracement zone at 25385 to 25078 will become the primary downside target.

Daily Swing Chart Forecast

Based on the early price action, the direction of the Dow on Friday will be determined by trader reaction to the minor pivot at 26303.

A sustained move under 26303 will indicate the presence of sellers. This could create the downside momentum needed to challenge Thursday’s low at 25922.

The low at 25922 is a possible trigger point for an acceleration to the downside with 25385 the minimum downside target.

A sustained move over 26303 will signal the presence of buyers. This could lead to a quick rally into the Fibonacci level at 26393. This price is a possible trigger point for an acceleration to the upside.

Even if the rally is strong, the Dow is going to have to close above 26604 to avoid forming a weekly closing price reversal top.