E-mini Dow Jones Industrial Average (YM) Futures Technical Analysis – Needs to Hold 26448 or Could Collapse into 26345 to 26277

June E-mini Dow Jones Industrial Average futures are trading slightly higher during the pre-market session on Tuesday. Volume is expected to pick up today after it came in at its lowest level of the year on Monday. This should also lead to increased volatility.

The Dow closed lower on Monday with a 1.3% drop in shares of Boeing contributing the most to its loss. This weakness could be absorbed later in the week after the airline maker reports earnings. This is expected to be an active week for traders with more than 140 S&P 500 companies scheduled to release their quarterly results.

At 06:16 GMT, June E-mini Dow Jones Industrial Average futures are trading 26532, up 20 or +0.08%.

Daily Swing Chart Technical Analysis

The main trend is up according to the daily swing chart. Yesterday’s closing price reversal top, however, suggests that momentum may be getting ready to shift to the downside. A trade through 26448 will confirm the chart pattern. A move through 26629 will negate the chart pattern and signal a resumption of the uptrend.

The minor trend is also up. A trade through 26311 will change the minor trend to down. This will also reaffirm a shift in momentum to the downside.

The minor range is 26311 to 26629. Its 50% level or pivot at 26470 is support.

The short-term range is 26060 to 26629. Its retracement zone at 26345 to 26277 is the next target area. Since the main trend is up, buyers could come in on a test of this area.

The intermediate range is 25377 to 26629. If the main trend changes to down then look for a pullback into the retracement zone at 26003 to 25855.

Daily Swing Chart Technical Forecast

Based on the early price action, the direction of the June E-mini Dow Jones Industrial Average on Tuesday is likely to be determined by trader reaction to the minor pivot at 26470.

Bullish Scenario

Holding above 26470 will indicate the presence of buyers. If this creates enough upside momentum then look for buyers to take out 26629. This is a potential trigger point for an acceleration to the upside since the next major target is the all-time high at 26988.

Bearish Scenario

A failure to hold 26470 will signal the presence of sellers. The first downside target is the potential support cluster at 26345, 26311 and 26277.

Look out to the downside if 26277 fails as support since the next major targets are the main bottom at 26060 and the intermediate 50% level at 26003.