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 trading higher in the pre-market session, continuing Monday’s late session surge as states eased coronavirus lockdowns. Meanwhile, oil is extending its gains on expectations fuel demand would begin to pick up. This helped boost the energy sector.

Investors are focusing on the reopening of several states including California and New York. California Governor Gavin Newsom said Monday some of the state’s retailers will be allowed to offer curb-side pickup starting Friday. Meanwhile, New York Governor Andrew Cuomo said that the daily number of hospitalizations and new deaths are declining, suggesting the state is on “the other side of the mountain.” He added, however, that officials are not seeing as steep of a decline as they had hoped.

At 10:39 GMT, June E-mini Dow Jones Industrial Average futures are at 23810, up 239 or +1.01%.

Daily Swing Chart Technical Analysis

The main trend is up according to the daily swing chart, however, momentum has been trending lower since the April 30 closing price reversal top.

A trade through 24792 will negate the closing price reversal top and signal a resumption of the uptrend. A move through 22914 will change the main trend to down.

The main range is 29506 to 18086. Its retracement zone at 23796 to 25144 is resistance. This zone is controlling the longer-term direction of the Dow.

The intermediate range is 26962 to 18086. Its retracement zone at 23571 to 22524 is support. This zone stopped the selling at 23208 on Monday.

Daily Swing Chart Technical Forecast

Based on the early price action and the current price at 23810. The direction of the June E-mini Dow Jones Industrial Average the rest of the session on Tuesday is likely to be determined by trader reaction to the 50% level at 23796 and the 61.8% level at 23571.

Bullish Scenario

A sustained move over 23796 will indicate the presence of buyers. The first upside targets are minor resistance at 24000 and 24187. Overtaking these levels will put the Dow in a position to challenge the main top at 24792, followed by the main Fibonacci level at 25144.

Bearish Scenario

A sustained move under 23571 will signal the presence of sellers. The first downside target is the minor bottom at 23208. This is a potential trigger point for an acceleration into the main bottom at 22914 and the 50% level at 22524.

The 50% level at 22524 is a potential trigger point for an acceleration to the downside.