E-mini Dow Jones Industrial Average (YM) Futures Technical Analysis – Formed Potentially Bearish Closing Price Reversal Top

Taking out 25847 will confirm the closing price reversal top. If this move generates enough downside momentum then look for the selling to extend into at least 25696 to 25589.
James Hyerczyk
E-mini Dow Jones Industrial Average

June E-mini Dow Jones Industrial Average futures settled lower on Tuesday, producing a technically bearish closing price reversal top in the process. The move also ended the Dow’s 5-day winning streak. The selling was fueled by weakness in components J.P. Morgan Chase and Apple. The catalysts for the selling pressure were conflicting reports over the progress of U.S.-China trade negotiations.

In the cash market, the blue chip Dow Jones Industrial Average settled at 25887.38, down 26.72 or -0.10%. June E-mini Dow Jones Industrial Average futures settled at 25911, down 54 or -0.21%.

Daily June E-mini Dow Jones Industrial Average

Daily Swing Chart Technical Analysis

The main trend is down according to the daily swing chart. However, momentum has been trending higher since the formation of the closing price reversal bottom on March 8 at 25246. A trade through 26200 will change the main trend to down. A move through 25246 will negate the closing price reversal bottom and signal a resumption of the downtrend.

Tuesday’s closing price reversal top is potentially bearish. The chart pattern typically indicates the selling is greater than the buying at current price levels. If confirmed on a trade through 25847, it could trigger the start of a 2 to 3 day correction.

The short-term range is 25246 to 26145. Its retracement zone at 25696 to 25589 is the primary downside target.

Daily June E-mini Dow Jones Industrial Average

Daily Swing Chart Technical Forecast

The direction of the June E-mini Dow Jones Industrial Average on Wednesday hinges upon trader reaction to yesterday’s low at 25847.

Taking out 25847 will confirm the closing price reversal top. If this move generates enough downside momentum then look for the selling to extend into at least 25696 to 25589. After a test of this zone, the direction of the Dow the rest of the session on Wednesday is likely to be determined by the Fed’s monetary policy announcements and economic projections.

Overtaking 26145 will negate the closing price reversal top. This could drive the Dow into the next main top at 26200. A breakout over this level will indicate the buying is getting stronger with the next target the 26263 main top.

Don't miss a thing!

Discover what's moving the markets. Sign up for a daily update delivered to your inbox

Latest Articles

See All

Expand Your Knowledge

See All

Top Promotions

Top Brokers

IMPORTANT DISCLAIMERS
The content provided on the website includes general news and publications, our personal analysis and opinions, and contents provided by third parties, which are intended for educational and research purposes only. It does not constitute, and should not be read as, any recommendation or advice to take any action whatsoever, including to make any investment or buy any product. When making any financial decision, you should perform your own due diligence checks, apply your own discretion and consult your competent advisors. The content of the website is not personally directed to you, and we does not take into account your financial situation or needs.The information contained in this website is not necessarily provided in real-time nor is it necessarily accurate. Prices provided herein may be provided by market makers and not by exchanges.Any trading or other financial decision you make shall be at your full responsibility, and you must not rely on any information provided through the website. FX Empire does not provide any warranty regarding any of the information contained in the website, and shall bear no responsibility for any trading losses you might incur as a result of using any information contained in the website.The website may include advertisements and other promotional contents, and FX Empire may receive compensation from third parties in connection with the content. FX Empire does not endorse any third party or recommends using any third party's services, and does not assume responsibility for your use of any such third party's website or services.FX Empire and its employees, officers, subsidiaries and associates, are not liable nor shall they be held liable for any loss or damage resulting from your use of the website or reliance on the information provided on this website.
RISK DISCLAIMER
This website includes information about cryptocurrencies, contracts for difference (CFDs) and other financial instruments, and about brokers, exchanges and other entities trading in such instruments. Both cryptocurrencies and CFDs are complex instruments and come with a high risk of losing money. You should carefully consider whether you understand how these instruments work and whether you can afford to take the high risk of losing your money.FX Empire encourages you to perform your own research before making any investment decision, and to avoid investing in any financial instrument which you do not fully understand how it works and what are the risks involved.
FOLLOW US