E-mini Dow Jones Industrial Average (YM) Futures Technical Analysis – Room to Rally into 22524
June E-mini Dow Jones Industrial Average futures are trading higher during the pre-market session, boosted by optimism fueled by the slowing coronavirus death rates in Europe. Last week, the Dow slid 2.7%. The blue chip average is also deep in bear-market territory as concerns over the coronavirus outbreak have virtually shut down the global economy and have dampened sentiment around corporate profits.
At 10:00 GMT, June E-mini Dow Jones Industrial Average futures are trading 21774, up 817 or +3.90%.
Weekend figures in Europe showed slower death rates and new infections in the hardest-hit countries, such as Italy and Spain. This has sparked some positive momentum in global equities, with Europe’s Stoxx 600 jumping 2.5% at the open.
Daily Technical Analysis
The main trend is down according to the daily swing chart. A trade through 22545 will change the main trend to up. A move through 18086 will signal a resumption of the downtrend.
The minor trend is down. A trade through 22386 will change the minor trend to up. This will shift momentum to the upside. A trade through the minor bottom at 20500 will indicate the selling pressure is getting stronger.
The intermediate range is 26962 to 18086. Its retracement zone at 22524 to 23571 is the primary upside target. This zone stopped the rally at 22545 on March 27.
The short-term range is 18086 to 22545. Its retracement zone at 20316 to 19789 is potential support.
Daily Technical Forecast
The price action the past two session suggests the short-term direction of the June E-mini Dow Jones Industrial Average is being controlled by an uptrending Gann angle at 20646.
A sustained move over 20646 will indicate the presence of buyers. The daily chart indicates there is plenty of room to the upside with the first main target coming in at 22524.
A failure to hold 20646 will signal the return of sellers. This could trigger the momentum needed to challenge the short-term retracement zone at 20316 to 19789.