E-mini Dow Jones Industrial Average (YM) Futures Technical Analysis – Straddling Major Fib Level at 25144

June E-mini Dow Jones Industrial Average futures are trading slightly higher shortly after the cash market opening on Monday after posting solid gains in May. The early trade is a little tentative amid country-wide protests over race and a flare-up in tensions between Washington and Beijing.

UnitedHealth and Pfizer had the largest negative impacts on the blue-chip Dow and collectively shaved about 35 points off the index.

Pfizer, which reported disappointing trial results from a potential breast cancer treatment, also led the benchmark S&P 500 Index lower with a decline of more than 7%.

At 14:13 GMT, June E-mini Dow Jones Industrial Average futures are trading 25415, up 37 or +0.15%.

After posting a two-sided trade earlier in the session, the Dow has moved higher despite tension between China and the United States which is encouraging investors to proceed with caution.

U.S. President Donald Trump’s directive to begin the process of eliminating special treatment for Hong Kong is likely to create a new driver of volatility in global markets as tensions between Washington and Beijing climb again.

Tensions escalated somewhat earlier today after Beijing ordered major state-run firms to pause some purchases of U.S. farm goods, including soybeans, Bloomberg News reported.

Daily Swing Chart Technical Analysis

The main trend is up according to the daily swing chart. However, momentum has been trending lower since the formation of the closing price reversal top on May 28.

The market is in no position to change the main trend to down. This will occur if 22704 fails as support. Meanwhile a trade through 25794 will negate the closing price reversal top and signal a resumption of the uptrend.

The minor trend is also up. However, a trade through the new minor bottom at 24991 will change the minor trend to down. This will also shift momentum to the downside.

The main range is 29506 to 18086. Its retracement zone at 25144 to 23796 is major support. It is also controlling the longer-term direction of the Dow.

The minor range is 24076 to 25794. Its 50% level at 24935 is support.

Daily Swing Chart Technical Forecast

Based on the early price action, the direction of the June E-mini Dow Jones Industrial Average on Monday is likely to be determined by trader reaction to 24991.

Bullish Scenario

A sustained move over 24991 will indicate the presence of buyers. Overtaking the Fibonacci level at 25144 will indicate the buying is getting stronger. If this move can create enough upside momentum then look for buyers to make a run at 25794 over the near-term.

Bearish Scenario

A break under 25144 will be the first sign of weakness. However, the most damage to the downside will take place when 24935 is taken out. This move can trigger an acceleration to the downside with the nearest downside targets a cluster of levels at 24076, 23796 and 23571.

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