E-mini Dow Jones Industrial Average (YM) Futures Technical Analysis – Major Resistance Cluster 23571 – 23796

June E-mini Dow Jones Industrial Average futures are trading higher shortly after the cash market opening on Tuesday. The market is building on the strong gains from the previous session, as investors grew more optimistic about a decline in new coronavirus cases.

The rally is primarily being fueled by a series of positive coronavirus developments from around the world. In the U.S., the number of new cases appears to have fallen in recent days from their peak.

At 14:00 GMT, June E-mini Dow Jones Industrial Average futures are trading 23292, up 804 or 3.58%.

Raytheon Technologies led the Dow higher with a 9% surge.

Daily Technical Analysis

The main trend is up according to the daily swing chart. The trend turned up on Monday when buyers took out the last swing top at 22545. A trade through 20500 will change the main trend to down.

The intermediate range is 26962 to 18086. Its retracement zone at 22524 to 23571 is currently being tested.

The main range is 29506 to 18086. Its retracement zone at 23796 to 25144 is the major upside target.

Combining the two retracement zones makes 23571 to 23796 a major resistance cluster.

Daily Technical Forecast

The major area to watch on Tuesday is a potential resistance cluster formed by a pair of retracement levels and a pair of Gann angles.

Starting from the bottom of the cluster, the first target is a Fibonacci level at 23571. This is followed by an uptrending Gann angle at 23718 and a downtrending Gann angle at 23762. The last level of the resistance cluster is 23796.

Trader reaction to the resistance cluster will determine the near-term trend in the market. If sellers come in then the June E-mini Dow Jones Industrial Average could retrace at least 50% of its current rally.

However, crossing to the strong side of 23796 could trigger an acceleration into the major Fibonacci level at 25144.