E-mini Dow Jones Industrial Average (YM) Futures Technical Analysis – Minor Pivot at 26090 Controlling Short-Term Direction

June E-mail Dow Jones Industrial Average futures settled higher on Thursday, helped by a surge in the Energy Sector and a strong performance by Dow component Disney. Expectations of a Federal Reserve rate cut later in the year may have also underpin the market.

The Dow started out under pressure, but turned around during the pre-market session after reports of a tanker explosion in the Middle East helped drive crude oil prices 4% higher. Shares of Disney also contributed to the gains, rising 4.4% after an analyst at Morgan Stanley raised his price target on the stock to $160 per share from $135. The analyst cited the company’s new streaming service, noting it could give its global subscriber numbers a boost.

On Thursday, June E-mini Dow Jones Industrial Average futures settled at 26117, up 17 or +0.07%.

Daily Swing Chart Technical Analysis

The main trend is down according to the daily swing chart, however, momentum has been trending higher since the June 3 closing price reversal bottom at 24610.

A trade through 26289 will change the main trend to up. This will make 25891 a new main bottom. The next target over this level is the April 24 main top at 26694.

The minor trend is up. This is helping to generate some of the upside momentum. A trade through 26289 will reaffirm the minor trend. Taking out 25891 will change the minor trend to down and shift momentum to the downside.

The main range is 26694 to 24610. Its retracement zone at 25898 to 25652 is controlling the near-term direction of the Dow. Closing above this zone also supports the current upside bias.

The short-term range is 24610 to 26289. If the minor trend changes to down then look for a potential test of its retracement zone at 25450 to 25251.

The minor range is 26289 to 25891. Its 50% level or pivot at 26090 is also influencing the minor price action.

Daily Swing Chart Technical Forecast

Based on Thursday’s close at 26117, the direction of the June E-mini Dow Jones Industrial Average futures contract early Friday is likely to be determined by trader reaction to the pivot at 26090.

Bullish Scenario

A sustained move over 26090 will indicate the presence of buyers. If they are able to generate enough upside momentum then look for a potential retest of this week’s high at 26289. Taking out this top will change the main trend to up and could trigger an acceleration to the upside.

Bearish Scenario

A sustained move under 26090 will signal the presence of sellers. This could trigger a break into a support cluster at 25898 to 25891. If this area fails as support then look for a potential acceleration to the downside with the next target the main 50% level at 25652.