E-mini Dow Jones Industrial Average (YM) Futures Technical Analysis – Major Weekly Target Zone at 24269 to 24122

Based on Friday’s close at 24820 and the momentum into the close, the direction of the June E-mini Dow Jones Industrial Average this week is likely to be determined by trader reaction to the Fibonacci level at 24911.
James Hyerczyk
E-mini Dow Jones Industrial Average

June E-mini Dow Jones Industrial Average futures finished sharply lower with the selling driven by concerns over an economic slowdown. Early in the week, the price action was driven by a steep drop in Treasury yields that telegraphed to investors that the Fed was likely to cut rate later in the year. The second wave of selling pressure came about after President Trump vowed to impose a 5% tariff on Mexican imports starting on June 10. This caused instability and additional uncertainty for traders.

Last week, June E-mini Dow Jones industrial Average futures settled at 24820, down 800 or -3.22%.

Weekly June E-mini Dow Jones Industrial Average

Weekly Technical Analysis

The main trend is up according to the weekly swing chart, however, momentum is trending lower. A trade through 26694 will signal a resumption of the uptrend, while a move through 21550 will change the main trend to down.

The closing price reversal top at 26684 during the week-ending April 26 shifted momentum to the downside. The shift in momentum was reaffirmed when the minor trend changed to down.

The first main range is 26988 to 21550. Its retracement zone comes in at 24911 to 24269. The second main range is 21550 to 26694. Its retracement zone is 24122 to 23515.

Combining the two retracement zones creates a major potential support zone at 24269 to 24122.

Weekly Technical Forecast

Based on Friday’s close at 24820 and the momentum into the close, the direction of the June E-mini Dow Jones Industrial Average this week is likely to be determined by trader reaction to the Fibonacci level at 24911.

Bearish Scenario

A sustained move under 24911 will indicate the presence of sellers. The first downside target is an uptrending Gann angle at 24494. Look for a technical bounce on the first test of this angle.

If 24494 fails then look for the selling to extend into the two 50% levels at 24269 to 24122. This area is extremely important to the structure of the market. Watch for buyers to come in on a test of this area.

If 24122 fails and selling volume increases then look for an acceleration to the downside with the next target a Fibonacci level at 23515.

Bullish Scenario

A sustained move over 24911 will signal the return of buyers. The first upside target is a downtrending Gann angle at 25158. This angle has been guiding the Dow lower for six weeks. It is a potential trigger point for an acceleration to the upside with the next target angle coming in at 25926.

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