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

June E-mini Dow Jones Industrial Average futures closed higher on Tuesday as optimism that the Trump administration could move to ease lockdowns from the coronavirus overshadowed worrying earnings reports from JPMorgan and Wells Fargo.

“The market is going up on prospects of the economy reopening soon and also the coronavirus (possibly) reaching some sort of peak,” said Peter Cardillo, chief market economist at Spartan Capital Securities in New York.

On Tuesday, the June E-mini Dow Jones Industrial Average settled at 23880, up 571 or +2.39%.

Daily Swing Chart Technical Analysis

The main trend is up according to the daily swing chart. The next upside target is the March 3 main top at 26962. The main trend will change to down on a trade through 20500.

The minor trend is also up. A trade through 22988 will change the minor trend to down. This will also shift momentum to the downside.

The new short-term range is 18086 to 23967. Its retracement zone at 21027 to 20333 is potential support.

The intermediate range is 26962 to 18086. Its retracement zone at 22524 to 23571 is the nearest support zone.

The main range is 29506 to 18086. Its retracement zone at 23796 to 25144 is potential resistance. This area is currently being tested.

Short-Term Outlook

The two retracement zone combine to form a major price cluster at 23571 to 23796. Trader reaction to this zone will determine the direction of the June E-mini Dow Jones Industrial Average on Wednesday.

Look for an upside bias to develop on a sustained move over 23796. If this move creates enough upside momentum then look for the rally to possibly extend into the Fibonacci level at 25144.

Look for a downside bias to develop on a sustained move under 23571. This could trigger a break into the minor bottom at 22968, followed by the 50% level at 22524.