E-mini Dow Jones Industrial Average (YM) Futures Technical Analysis – Taking Out 26509 Reaffirms Uptrend

June E-mini Dow Jones Industrial Average futures are trading sharply higher at the mid-session on Friday. The rally is being driven by positive corporate news. The catalysts behind the rally are strong bank earnings from J.P. Morgan Chase and an optimistic outlook for Disney’s new streaming service. The earnings data is good news because ahead of the start of earnings season analysts had predicted the worst results since 2016.

At 16:41 GMT, June E-mini Dow Jones Industrial Average futures are trading 26379, up 248 or +0.95%.

Daily Technical Analysis

The main trend is up according to the daily swing chart. A trade through 26509 will signal a resumption of the uptrend. The trend is safe at this time. The nearest main bottom is 25377.

The minor trend is also up. A trade through 26509 will reaffirm the minor uptrend. A trade through 26060 will change the minor trend to down. This will also shift momentum to the downside.

The short-term range is 26509 to 26060. Its 50% level or pivot at 26285 is controlling the price action today.

The main range is 25377 to 26509. Its retracement zone at 25943 to 25809 is support.

Daily Technical Forecast

Based on the early price action, the direction of the June E-mini Dow Jones Industrial Average futures contract into the close is likely to be determined by trader reaction to the downtrending Gann angle at 26429.

Bullish Scenario

Overtaking the Gann angle at 26429 will indicate the buying is getting stronger. This could drive the market into the next downtrending Gann angle at 26469. This is the last potential resistance angle before the 26509 main top.

Bearish Scenario

A sustained move under 26429 will signal the presence of sellers. If this move creates enough downside momentum then look for the selling to extend into the downtrending Gann angle at 26349. A failure to hold this angle will likely lead to a test of the pivot at 26285, followed closely by the uptrending Gann angle at 26273.