E-mini Dow Jones Industrial Average (YM) Futures Technical Analysis – Strengthens Over 25852, Weakens Under 25761

The blue chip June E-mini Dow Jones Industrial Average futures contract posted a solid gain on Friday, helped by higher Treasury yields which reduced fears of a U.S. recession and hope that the renewed trade talks between the U.S. and China would lead to a trade deal. Investor sentiment was also boosted by ride-share app Lyft’s IPO.

On Friday, June E-mini Dow Jones Industrial Average futures settled at 25933, up 196 or +0.76%.

Daily Swing Chart Technical Analysis

The main trend is down according to the daily swing chart. However, momentum is trending higher. The main trend will change to up on a trade through 26145. A move through 25377 will signal a resumption of the downtrend.

The minor trend is up. It turned up on Friday when buyers took out the minor top at 25822. The new minor bottom is 25441. Earlier in the week, momentum shifted to the upside when buyers formed a closing price reversal bottom at 25377 on March 25. This shift in momentum was confirmed when the minor trend changed to up.

The short-term range is 26145 to 25377. Its retracement zone is 25761 to 25852. This zone is controlling the direction of the Dow. Friday’s strong close above this zone has turned it into support.

Daily Swing Chart Technical Forecast

Based on Friday’s close at 25933, the direction of the June E-mini Industrial Average futures market on Monday is likely to be determined by trader reaction to the short-term Fibonacci level at 25852.

Bullish Scenario

A sustained move over 25852 will indicate the presence of buyers. If this creates enough upside momentum then look for the rally to possibly extend into the next minor top at 26044. Taking out this level will indicate the momentum is getting stronger. This is followed by the next main top and closing price reversal top at 26145.

Bearish Scenario

A sustained move under 25852 will signal the presence of sellers. This could trigger a quick break into the short-term 50% level at 25761. If this level fails as support then look for the selling to possibly extend into the next minor bottom at 25441 and the main bottom at 25377.