E-mini Dow Jones Industrial Average (YM) Futures Technical Analysis – May 24, 2019 Forecast

June E-mini Dow Jones Industrial Average futures are trading higher shortly before the cash market opening. The move is being fueled by a positive comment from President Trump and position-squaring ahead of the long holiday weekend. Trump told reporters on Thursday afternoon he expected the U.S.-China trade war to end swiftly. He also noted a trade deal with China could lift tough restrictions on the Chinese telecom giant Huawei. A recovery in crude oil after yesterday’s steep sell-off could also be providing support.

At 13:09 GMT, June E-mini Dow Jones Industrial Average futures are trading 25608, up 145 or +0.57%.

Daily Technical Analysis

The main trend is down according to the daily swing chart. A trade through 25215 will signal a resumption of the downtrend. This could lead to an eventual test of the last main bottom at 24900.

The minor trend is also down. A trade through 25955 will change the minor trend to up. This will also shift momentum to the upside.

The minor range is 25215 to 25955. The market is currently straddling its retracement zone at 25585 to 25498. This zone is controlling the short-term direction of the market.

The main range is 26694 to 25215. Its retracement zone at 25955 to 26129 is the primary upside target. The lower or 50% level at 25955 stopped the rally last week.

Daily Technical Forecast

Based on the early price action and the current price at 25608, the direction of the June E-mini Dow Jones Industrial Average on Friday is likely to be determined by trader reaction to the short-term 50% level at 25585.

Bullish Scenario

A sustained move over 25585 will indicate the presence of buyers. If this move creates enough upside momentum then look for the rally to possibly extend into the uptrending Gann angle at 25390. Overtaking this angle will indicate the buying is getting stronger. This could trigger a further rally into 25955.

Bearish Scenario

A sustained move under 25585 will signal the presence of sellers. This could trigger a retest of the support cluster at 25503 to 25498.

If 25498 fails as support then look for the selling to possible extend into the next uptrending Gann angle at 25390, followed by yesterday’s low at 25320.

Crossing to the weak side of the downtrending Gann angle at 25286 will put the Dow in a weak position with 25215 the next major downside target.