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

If the early selling pressure continues then look for a break into the main 50% level at 23796, followed closely by the Fibonacci level at 23571. Trader reaction to these two levels will set the tone for the rest of the session.
James Hyerczyk

June E-mini Dow Jones Industrial Average futures are called lower based on the pre-market trade. The blue chip average gave back earlier gains as investors turned cautious about a second wave of coronavirus infections with several countries reopening economies.

Dow components Exxon Mobil Corp and Chevron Corp fell more than 1% in premarket trading, as oil prices tumbled after Germany and South Korea reported a surge in COVID-19 cases after easing lockdowns.

At 12:47 GMT, June E-mini Dow Jones Industrial Average futures are trading 23995, down 291 or -1.20%.

Daily June E-mini Dow Jones Industrial Average

Daily Swing Chart Technical Analysis

The main trend is up according to the daily swing chart. A trade through 24792 will signal a resumption of the uptrend. The main trend will change to down on a move through the last main bottom at 23208.

The minor trend is also up. A trade through 23428 will change the minor trend to down. This will also shift momentum to the downside.

The main range is 29506 to 18086. Its retracement zone at 23796 to 25144 is resistance. This zone stopped the rally at 24792 two weeks ago and earlier today at 24471. This zone is also controlling the longer-term direction of the Dow.

The intermediate range is 26962 to 18086. Its retracement zone at 23571 to 22524 is potential support.

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Daily Swing Chart Technical forecast

Today’s price action suggests the selling is greater than the buying at current price levels. Additionally, a secondary lower top may be forming more than a week after the bearish closing price reversal top was formed on April 30 at 24792.

If the early selling pressure continues then look for a break into the main 50% level at 23796, followed closely by the Fibonacci level at 23571. Trader reaction to these two levels will set the tone for the rest of the session.

Bullish Scenario

Holding the 50% level at 23796 will indicate the return of buyers. If this creates enough upside momentum then look for a possible retest of the intraday high at 24471.

Taking out 24471 will indicate the buying is getting stronger with potential targets coming in at 24792 and 25144.

Bearish Scenario

A failure to hold 23796 will be a sign of weakness. This should lead to a test of 23571. If this level fails then look for the selling to possibly extend into the minor bottom at 23428, followed closely by the main bottom at 23208.

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