E-mini Dow Jones Industrial Average (YM) Futures Technical Analysis – 25734 Trigger Point for Upside Acceleration

The blue chip Dow Jones Industrial Average is trading higher on Wednesday at the mid-session on news that President Donald Trump plans to delay the implementation of auto tariffs. Stocks rebounded after early session weakness threatened to test this week’s low which was posted on Tuesday. The price action indicates a great sensitivity by investors to trade news.

Three sources told CNBC the administration will delay the levies on autos by up to six months. The news, which was first reported by Bloomberg News, drove auto stocks higher. Equities initially fell after the release of weaker-than-expected economic data stoked fears that the U.S.-China trade war is dragging down global economic growth.

At 17:03 GMT, June E-mini Dow Jones Industrial Average futures are trading 25633, up 63 or +0.25%.

Daily Technical Analysis

The main trend is down according to the daily swing chart. A trade through 25215 will signal a resumption of the downtrend. The market isn’t close to turning the main trend up, but there is room for a normal 50% to 61.8% correction.

The main range is 21550 to 26694. Its retracement zone at 24122 to 23515 is the primary downside target and value zone.

The short-term range is 26694 to 25215. Its retracement zone at 25955 to 26129 is the first upside target. Since the main trend is down, sellers are likely to come in on a test of this zone.

Daily Technical Forecast

Based on the early price action and the current price at 25633, the direction of the June E-mini Dow Jones Industrial Average the rest of the session is likely to be determined by trader reaction to the steep downtrending Gann angle at 25734.

Bullish Scenario

Taking out and sustaining a rally through 25734 will indicate the buying is getting stronger. If this creates enough upside momentum then look for a potential acceleration into the short-term 50% level at 25955. Look for sellers on the first test of this level. If buyers can take out this level with rising volume then look for the rally to possibly extend into the short-term Fibonacci level at 26129, followed by the downtrending Gann angle at 26214.

Bearish Scenario

A sustained move under 25734 will indicate the presence of sellers. If this creates enough downside momentum then look for a possible retest of this week’s low at 25215.

If 25215 fails then look for a further break into the next main bottom at 24900. This is followed by a long-term uptrending Gann angle at 24622.