E-mini Dow Jones Industrial Average (YM) Futures Technical Analysis – June 12, 2019 Forecast

The early price action is inclusive, however, the early momentum suggests the market is headed lower. On the upside, the nearest resistance angle comes in at 26150. On the downside, the nearest support is the main Fibonacci level at 25898.
James Hyerczyk
E-mini Dow Jones Industrial Average

June E-mini Dow Jones Industrial Average futures are trading lower shortly after the cash market opening, but traders have made a valiant effort to claw back most of its earlier losses. The early selling pressure was fueled by profit-taking and position-squaring tied to renewed concerns over U.S.-China trade relations.

The selling pressure isn’t tied to anything particularly bearish. President Trump talked tough on tariffs on Tuesday, but today’s muted consumer inflation data likely means a Federal Reserve rate cut is probably coming in July.

At 14:30 GMT, June E-mini Dow Jones Industrial Average futures are trading 26006, down 53 or -0.21%.

Daily June E-mini Dow Jones Industrial Average

Daily Technical Analysis

The main trend is down according to the daily swing chart. While impressive, six days of higher closes failed to take out the swing top at 26694 so the main trend never changed to up. In the meantime, a new main top has formed at 26289. Taking out this top will change the trend to up.

A trade through 24610 will signal a resumption of the downtrend. This is not likely to occur today, but there is room for a normal retracement of the last rally.

The main range is 26694 to 24610. Its retracement zone at 25898 to 25652 is the first downside target and potential support area. It is also controlling the near-term direction of the market.

Daily Technical Forecast

The early price action is inclusive, however, the early momentum suggests the market is headed lower. On the upside, the nearest resistance angle comes in at 26150. On the downside, the nearest support is the main Fibonacci level at 25898.

Bullish Scenario

A sustained move over 26150 will indicate the presence of buyers. If this move creates enough upside momentum then look for a possible test of 26289. Taking out this level will change the trend to up and could trigger a surge into the downtrending Gann angle at 26422.

Bearish Scenario

The inability to overcome 26150 will be the first sign of weakness. Taking out 25898 will be the next. This will indicate the selling pressure is getting stronger and it could trigger an acceleration to the downside with the next major target the 50% level at 25652.

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