E-mini Dow Jones Industrial Average (YM) Futures Technical Analysis – Buyers May Go After 25955 to 26129 into Close

Based on today’s price action and the current price at 25857, June E-mini Dow Jones Industrial Average futures can move either way into the close, but there is a slight bias to the upside. The inside move also suggests investor indecision and impending volatility. Traders could also be deciding whether to attack 25955 to 26129, or retreat into 25585 to 25498.
James Hyerczyk
E-mini Dow Jones Industrial Average

June E-mini Dow Jones Industrial Average futures are trading higher at the mid-session. The blue chip market is bouncing back after Monday’s weakness due to the news that the U.S. had temporarily eased restrictions on Chinese telecom giant Huawei.

The Dow in particular was helped by strong recoveries in components in tech firms Apple and Intel. It was also boosted by a jump in shares of Boeing, which rose nearly 1.0% after The Wall Street Journal reported that a bird collision may have caused the 737 Max crash in March. If true then the amount of potential liability for the airline maker could be reduced.

Despite today’s gains, investors remain tentative about chasing the market higher due to technical resistance and the fact that trade tensions are not likely to go away over the near-term.

At 18:52 GMT, June E-mini Dow Jones Industrial Average futures are trading 25857, up 161 or +0.63%.

Daily June E-mini Dow Jones Industrial Average

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. A change in trend to up is highly unlikely, but there is room for a normal 50% to 61.8% retracement.

The minor trend is also down. A move through 26016 will change the minor trend to up. This will also shift momentum to the upside.

The main 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. This area is controlling the near-term direction of the market. Bearish traders are trying to form a secondary lower top.

The short-term range is 25215 to 25955. Counter-trend buyers are trying to establish support, or a higher bottom inside its retracement zone at 25585 to 25498. Monday’s low at 25554 was inside this zone.

Daily Technical Forecast

Based on today’s price action and the current price at 25857, June E-mini Dow Jones Industrial Average futures can move either way into the close, but there is a slight bias to the upside. The inside move also suggests investor indecision and impending volatility. Traders could also be deciding whether to attack 25955 to 26129, or retreat into 25585 to 25498.

On the upside, resistance is the 50% level at 25955. This is followed by a downtrending Gann angle at 26086 and a Fibonacci level at 26129.

On the downside, the nearest Gann angle comes in at 25599. This is followed by a 50% level at 25585 and a Fibonacci level at 25498.

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