E-mini Dow Jones Industrial Average (YM) Futures Technical Analysis – May 31, 2019 Forecast

Based on the early price action, the direction of the June E-mini Dow Jones Industrial Average on Friday is likely to be determined by trader reaction to a pair of Gann angles at 24974 and 25030. The daily chart is wide open under 24900 with the next target a major 50% level at 24122.
James Hyerczyk
E-mini Dow Jones Industrial Average

June E-mini Dow Jones Industrial Average futures are trading sharply lower shortly before the cash market opening. The catalyst behind the selling pressure is President Trump’s surprise threat of tariffs on all Mexico imports.

Traders are increasing bets that this news, coupled with the escalating trade dispute between the United States and China, will lead to an economic slowdown or perhaps a recession.

At 12:46 GMT, June E-mini Dow Jones Industrial Average futures are trading 24941, down 251 or -0.98%.

Daily June E-mini Dow Jones Industrial Average

Daily Technical Analysis

The main trend is down according to the daily swing chart. The downtrend was reaffirmed earlier today when sellers took out the previous low at 24937 and the February 8 main bottom at 24900.

The Dow isn’t close to changing the main trend to up, but due to the prolonged move down in terms of price and time, it begins the session inside the window of time for a potentially bullish closing price reversal bottom.

Daily Technical Forecast

Based on the early price action, the direction of the June E-mini Dow Jones Industrial Average on Friday is likely to be determined by trader reaction to a pair of Gann angles at 24974 and 25030.

Bearish Scenario

A sustained move under 24974 will indicate the presence of sellers. The next target is the bottom at 24900. The daily chart is wide open under this level with the next target a major 50% level at 24122.

Bullish Scenario

A sustained move over 25030 will signal the presence of buyers. If this move creates enough upside momentum then look for buyers to go after yesterday’s close at 15190. Taking out this level will put the Dow in a position to form a potentially bullish closing price reversal bottom.

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