E-mini Dow Ready to Challenge 34932 – 35380 Retracement Zone

March E-mini Dow Jones Industrial Average futures are trading higher Tuesday morning after the Russian Defense Ministry reportedly announced that it had begun returning some troops to deployment bases after training exercises near the Ukrainian border.

At 10:37 GMT, March E-mini Dow Jones Industrial Average futures are trading 34785, up 314 or +0.91%.

According to CNBC, Russian Defense Ministry spokesman Igor Konashenkov was quoted as saying military units from the southern and western districts of Russia had already begun returning to their garrisons, a move that could de-escalate the febrile geopolitical standoff between Russia and the West over Ukraine.

Daily Swing Chart Technical Analysis

The main trend is down according to the daily swing chart. A trade through 34205 will signal a resumption of the downtrend. A move through 35752 will change the main trend to up.

The major support is a retracement zone at 33461 to 32665. This zone stopped the selling at 33031 on January 24.

The minor range is 33031 to 35752. Its retracement zone at 34392 to 34205 is support. This zone stopped the selling at 34205 on February 14.

The short-term range is 36832 to 33031. Its retracement zone at 34932 to 35380 is the next upside target. It is controlling the near-term direction of the E-mini Dow.

Daily Swing Chart Technical Forecast

The direction of the March E-mini Dow Jones Industrial Average on Tuesday is likely to be determined by trader reaction to 34392.

Bullish Scenario

A sustained move over 34392 will indicate the presence of buyers. If this move creates enough upside momentum then look for a test of 34932, followed closely by 34979. Look for sellers on the first test of this area. They will be trying to form a secondary lower top.

Overtaking 34979 will indicate the buying is getting stronger with 35380 the next target. Taking out this level could lead to a test of 35752.

A trade through 35752 will change the main trend to up. This could trigger an acceleration to the upside with 36390 the next target.

Bearish Scenario

A sustained move under 34392 will signal the presence of sellers. This could trigger a break into 34205 then 34070.

A failure at 34070 could trigger an acceleration to the downside with 33461 the next likely target.