E-mini Dow Jones Industrial Average (YM) Futures Technical Analysis – Holding Above 24327 Sustains Momentum

June E-mini Dow Jones Industrial Average futures jumped at the open on Tuesday on another round of upbeat quarterly earnings reports, even as investors braced for a likely slide in consumer confidence data later in the day. Shares of Pfizer and 3M were both higher after first-quarter earnings results, helping sentiment.

At 14:02 GMT, June E-mini Dow Jones Industrial Average futures are trading 24336, up 330 or +1.49%.

Investors are optimistic about the prospect of states re-opening the U.S. economy. Sectors of the market which are dependent on an economic restart including small caps, high beta stocks, and cyclical sectors like financials, materials, and industrials.”

Daily Swing Chart Technical Analysis

The main trend is up according to the daily swing chart. The trend changed to up earlier today when buyers took out the last main top at 24327. A new main bottom was formed at 22814. A trade through this level will change the main trend to down.

The main range is 29506 to 18086. The market is currently trading inside its retracement zone at 23796 to 25144. This zone is controlling the longer-term direction of the Dow.

The intermediate range is 26962 to 18086. Its retracement zone at 23571 to 22524 is support. This zone stopped the selling last week at 22814.

Combining the two retracement zones creates a major support cluster at 23796 to 23571.

Daily Swing Chart Technical Forecast

Based on the early price action and the current price at 24336, 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 23796 and 23571.

Bullish Scenario

A sustained move over 23796 will indicate the presence of buyers. Holding above the former top at 24327 will indicate the buying is getting stronger. If this creates enough upside momentum then look for a possible surge into the main Fibonacci level at 25144. This is a potential trigger point for an acceleration to the upside.

Bearish Scenario

Falling back below the breakout level at 24327 will indicate the buying is weak, or the selling is getting stronger. This could lead to a retest of 23796 to 23571.

We could see the start of a steep break if 23571 fails as support.