March E-mini Dow Jones Industrial Average futures hit a record high early in the week before drifting sideways to lower the rest of the week. Volume was well-below average as investors prepared for the start of a long holiday week-end. This type of price action could continue this week with many of the major banks and institutions on the sidelines until after the start of the new year.
Daily Swing Chart Analysis
The main trend is up according to the daily swing chart. A trade through 24896 will signal a resumption of the uptrend. However, due to the prolonged rally in terms of price and time and the expected light volume, traders should watch for the formation of a potentially bearish closing price reversal top.
The short-term range is 24086 to 24896. If the selling pressure resumes on Monday, we could see a move into the retracement zone at 24491 to 24395. Since the main trend is up, buyers may show up on a test of this area.
The main range is 23201 to 24896. If the selling is strong enough to take out the short-term Fibonacci level at 24395, we could see an eventual test of its retracement zone at 24049 to 23848.
Daily Swing Chart Forecast
Last week, the March E-mini Dow Jones Industrial Average produced a strange pattern on the daily chart, it posted the week’s range on Monday. After that, prices just drifted inside this range. Monday’s high was 24896 and its low was 24693.
Based on this chart pattern, look for an upside bias to develop on a sustained move over 24896 and for a downside bias to develop on a sustained move under 24693. However, due to the expected light volume, traders have to be careful buying strength and selling weakness.