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E-mini Dow Jones Industrial Average (YM) Futures Analysis – May 30, 2016 Forecast

By:
James Hyerczyk
Published: May 30, 2016, 04:15 UTC

The June E-mini Dow Jones Industrial Average futures market is closed Monday because of the U.S. Memorial Day bank holiday so we’ll take a look at the

E-mini Dow Jones Industrial Average

The June E-mini Dow Jones Industrial Average futures market is closed Monday because of the U.S. Memorial Day bank holiday so we’ll take a look at the weekly chart which should offer you guidance all week especially when combined with the daily chart analysis.

Weekly June E-mini Dow Jones Industrial Average

The main trend is up according to the weekly swing chart. A trade through 18083 will signal a resumption of the uptrend. A trade through 17297 will turn the minor trend down.

The short-term range is 18083 to 17297. Its retracement zone is 17690 to 17783. The market closed on the strong side of this zone, giving it an upside bias. This zone should be considered support this week.

The main range is 15299 to 18083. Its retracement zone at 16691 to 16362 is a major downside target.

Based on the close at 17849, the direction of the market this week will likely be determined by trader reaction to the downtrending angle at 17891.

Taking out 17891 and sustaining the move will signal the presence of buyers. This could lead to a labored rally with additional targets at 17987 and 18035. The latter is the last potential resistance angle before the 18083 main top.

Taking out 18083 will signal a resumption of the uptrend. It will also be a new all-time high.

The inability to overcome 17891 will indicate the presence of sellers. This could lead to a labored break with potential support at 17783, 17731, 17699 and 17690.

Crossing to the weak side of the short-term 50% level at 17690 will indicate increasing selling pressure. The daily chart begins to open up under this level. This could trigger an acceleration to the downside with the next major target the minor bottom at 17297.

Taking out 17297 will turn the minor trend to down. This is another trigger point for a steep sell-off.

Essentially, the Dow is trading inside a triangle chart pattern. The upper level comes in at 17891. The lower level at 17731. The lower level has provided support and guidance since the main bottom at 15299 the week-ending January 22. Taking out this support angle could indicate the Dow is getting ready to roll-over to the downside.

About the Author

James is a Florida-based technical analyst, market researcher, educator and trader with 35+ years of experience. He is an expert in the area of patterns, price and time analysis as it applies to futures, Forex, and stocks.

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