E-mini Dow Jones Industrial Average (YM) Futures Analysis – Testing Major Retracement Zone at 24923 to 25347

The blue chip Dow Jones Industrial Average closed higher for a seventh consecutive session on Friday, After consolidating for several weeks, the market looks like it’s getting ready to breakout to the upside. The catalysts behind the rally are strong earnings, solid economic reports and an easing of geopolitical tensions.

At 0633 GMT, June E-mini Dow Jones Industrial Average futures are trading 24927, up 104 or +0.42%.

Daily Swing Chart Technical Analysis

The main trend is up according to the daily swing chart. Last week, buyers took out two swing tops at 24458 and 24827, confirming the change in trend.

On the downside, support is a Fibonacci level at 24684, and 50% levels at 24569 and 24421.

On the upside, the first resistance is a Fibonacci level at 24867. The next key area and potential resistance is a major retracement zone at 24923 to 25347.

Daily Swing Chart Technical Forecast

Based on the early trade, the direction of the June E-mini Dow Jones Industrial Average futures contract is likely to be determined by trader reaction to the major 50% level at 24923.

A sustained move over 24923 will indicate the buying is getting stronger. We could even see an acceleration to the upside side the next major target is the major Fibonacci level at 25347.

A sustained move under 24923 will signal the presence of sellers. This could lead to a quick break into 24867. This is a possible trigger point for an acceleration into 24684 then 24569.

Today is the eighth day up from the most recent bottom. Therefore, we begin the session with the Dow in the window of time for a closing price reversal top.