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E-mini Dow Jones Industrial Average (YM) Futures Technical Analysis – 50% Resistance at 22524

Based on the early price action and the current price at 22216, the direction of the June E-mini Dow Jones Industrial Average the rest of the session on Tuesday is likely to be determined by trader reaction to the 50% level at 22524.
James Hyerczyk

June E-mini Dow Jones Industrial Average futures are trading higher on Tuesday after recovering from earlier weakness. Despite the early strength, the buying has been a little tentative with the blue chip average still trading below last week’s high.

With the Dow getting ready to wrap up its worst period of losses and historic market volatility sparked by the coronavirus pandemic, there were a few glimmers of hope for the future. U.S. Consumer Confidence dropped less than expected in March. Goldman Sachs said the economy would go through an unprecedented plunge in the second quarter, but the recovery would then be the fastest in history and shares of big tech stocks like Google-parent Alphabet, Amazon, Microsoft and Apple rose.

At 15:20 GMT, June E-mini Dow Jones Industrial Average futures are trading 22216, up 33 or +0.15%.

Daily June E-mini Dow Jones Industrial Average

Daily Technical Analysis

The main trend is down according to the daily swing chart. However, momentum is trending higher. The main trend changes to up on a trade through 26962. A move through 18086 will signal a resumption of the downtrend.

The minor trend is up. This is controlling the upside momentum. A trade through the minor top at 22545 will indicate the buying is getting stronger. A move through 20778 will change the minor trend to down and shift momentum to the downside.

The main range is 26962 to 18086. Its retracement zone at 22524 to 23571 is resistance. This zone stopped the rally last week at 22545.

The short-term range is 18086 to 22545. Its retracement zone at 20316 to 19789 is the next downside target area.

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Daily Technical Forecast

Based on the early price action and the current price at 22216, the direction of the June E-mini Dow Jones Industrial Average the rest of the session on Tuesday is likely to be determined by trader reaction to the 50% level at 22524.

Bearish Scenario

A sustained move under 22524 will indicate the presence of sellers. The first target is a downtrending Gann angle at 21842. Crossing to the weak side of this angle could trigger a break into a pair of Gann angles at 21158 to 21058.

If 21058 fails as support then look for the selling to extend into the short-term retracement zone at 20316 to 19789.

Bullish Scenario

Taking out 22524 and sustaining the move will signal the presence of buyers. Look for a possible acceleration to the upside if buyers take out 22545. This could trigger spike into the Fibonacci level at 23571.

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