E-mini Dow Jones Industrial Average (YM) Futures Technical Analysis – Strong Over 23796, Weak Under 23571

June E-mini Dow Jones Industrial Average futures are expected to open lower based on the early session trade. The catalyst behind the weakness is a slump in oil prices that drove energy stocks lower. Investors are also bracing for another batch of dour first-quarter earnings reports and economic data.

According to the early price action, Exxon Mobil Corp. and Chevron Corp. lost between 3.6% and 4.3% in premarket trading as crude prices fell to levels last seen in 1999 on concerns of oversupply.

At 13:23 GMT, June E-mini Dow Jones Industrial Average futures are trading 23666, down 493 or -2.04%.

Daily Swing Chart Technical Analysis

The main trend is up according to the daily swing chart. A move through 24327 will signal a resumption of the uptrend. The main trend will change to down on a trade through the last swing bottom at 23079.

The main range is 29506 to 18086. Its retracement zone at 23796 to 25144 is major resistance. Last week, this zone stopped the rally at 24327. Shortly before the opening, the market is trading on the weak side of this zone.

The intermediate range is 26962 to 18086. Its retracement zone at 22524 to 23571 is the next downside target.

Combining the two retracement zones creates a price cluster at 23796 to 23571. Trader reaction to this area could determine the near-term direction of the Dow.

The short-term range is 18086 to 24327. Its retracement zone at 21207 to 20470 is the next downside target.

Daily Swing Chart Technical Forecast

Based on the early price action and the current price at 23666, the direction of the June E-mini Dow Jones industrial Average the rest of the session on Monday is likely to be determined by trader reaction to the 50% level at 23796 and the Fibonacci level at 23571.

Bullish Scenario

A sustained move over 23796 will indicate the presence of buyers. If this creates enough upside momentum then look for a retest of last week’s high at 24327.

Taking out 24327 will signal a resumption of the uptrend. This could trigger a rally into the main Fibonacci level at 25144.

Bearish Scenario

A sustained move under 23571 will signal the presence of sellers. The next target is the main bottom at 23079. Taking out this level could trigger a further break into the 50% level at 22524.

The 50% level at 22524 is the trigger point for an acceleration to the downside with another 50% level at 21207 the next likely downside target.