E-mini Dow Jones Industrial Average (YM) Futures Technical Analysis – Reaction to 34002 Pivot Sets Early Tone

June E-mini Dow Jones Industrial Average futures closed lower on Monday as investors took a breather ahead of a series of quarterly earnings reports. Technology issues were the biggest drag on the blue chip average.

Helping to put a lid on prices were weak performances by Intel Corp, Boeing Co, Nike Inc and Travelers Inc. All lost more than 1%. The biggest winner was Walgreen’s, which rose 0.92%. This was followed by Coca-Cola Co, which posted a 0.60% gain and Apple Inc, which gained 0.51%.

On Monday, June E-mini Dow Jones Industrial Average futures settled at 33958, down 123 or -0.36%.

Coca-Cola shares rose 0.6% after the consumer giant reported better-than-expected earnings and revenue. The company also said demand in March has returned to pre-pandemic levels.

Daily Swing Chart Technical Analysis

The main trend is up according to the daily swing chart. A trade through 34144 will signal a resumption of the uptrend.

The main trend will change to down on a trade through 31951. This is highly unlikely, but the Dow remains inside the window of time for a potentially bearish closing price reversal top.

The minor trend is also up. A new minor top was formed at 34144. A trade through 34048 will make 33860 a new minor bottom.

The minor range is 34144 to 33860. Its pivot at 34002 is potential resistance.

The second minor range is 33157 to 34144. Its 50% level at 33651 is potential support.

The main range is 31951 to 34144. If the minor trend changes to down then its 50% level at 33048 will become the primary downside target.

Daily Swing Chart Technical Forecast

The direction of the June E-mini Dow Jones Industrial Average early in the session on Tuesday is likely to be determined by trader reaction to 34002.

Bullish Scenario

A sustained move over 34002 will indicate the presence of buyers. If this move creates enough upside momentum then look for a move into 34144. Taking out this level could trigger an acceleration to the upside.

Bearish Scenario

A sustained move under 34002 will signal the presence of sellers. Taking out 33860 will indicate the selling is getting stronger with 33651 the next likely target. This is also a potential trigger point for an acceleration to the downside.

Side Notes

Taking out 34144 then closing lower on Tuesday will form a potentially bearish closing price reversal top. If confirmed, then this could trigger the start of a 2 to 3 day correction.

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