E-mini Dow Jones Industrial Average (YM) Futures Technical Analysis – Testing 34100 -34312 Retracement ZoneThe direction of the June E-mini Dow Jones Industrial Average into the close will be determined by trader reaction to 34100.
June E-mini Dow Jones Industrial Average futures are trading higher late in the session on Thursday after weekly jobless claims hit their lowest level since the start of a pandemic-led recession.
Trading Derivatives carries a high level of risk to your capital and you should only trade with money you can afford to lose. Trading Derivatives may not be suitable for all investors, so please ensure that you fully understand the risks involved, and seek independent advice if necessary. A Product Disclosure Statement (PDS) can be obtained either from this website or on request from our offices and should be considered before entering into a transaction with us. Raw Spread accounts offer spreads from 0.0 pips with a commission charge of USD $3.50 per 100k traded. Standard account offer spreads from 1 pips with no additional commission charges. Spreads on CFD indices start at 0.4 points. The information on this site is not directed at residents in any country or jurisdiction where such distribution or use would be contrary to local law or regulation.
On the negative side, shares of Dow component Cisco dropped 3% Thursday after the tech conglomerate issued weaker-than-expected earnings guidance for the current quarter.
At 19:24 GMT, June E-mini Dow Jones Industrial Average futures are trading 34130, up 299 or +0.88%.
In economic news, the number of Americans filing for new claims for unemployment benefits fell to 444,000 in the week ended May 15, down for the third straight time, suggesting job growth picked up this month, though companies still are desperate for workers.
Daily Swing Chart Technical Analysis
The main trend is down according to the daily swing chart. However, today’s price action suggests momentum may be getting ready to shift to the upside.
A trade through 34423 will change the main trend to up. A move through 33200 will signal a resumption of the downtrend.
The minor trend is also down. A new main bottom has formed at 33402.
The main range is 31951 to 35000. Its retracement zone at 33476 to 33116 is support. This zone is also controlling the near-term direction of the Dow.
The short-term range is 35000 to 33200. Its retracement zone at 34100 to 34312 is the primary upside target and last resistance zone before the main top at 35000.
The minor range is 33200 to 34423. Its 50% level at 34100 is new support.
Daily Swing Chart Technical Forecast
The direction of the June E-mini Dow Jones Industrial Average into the close will be determined by trader reaction to 34100.
A sustained move over 33812 will indicate the presence of buyers. If this creates enough upside momentum then look for the rally to possibly extend into the short-term 50% level at 34100, followed by the short-term Fibonacci level at 34312 and the main top at 34423.
Taking out 34423 will change the main trend to up. This could trigger an acceleration to the upside with 35000 the next potential upside target.
A sustained move under 33812 will signal the presence of sellers. This could create the downside momentum needed to challenge the main 50% level at 33476, followed by the minor bottom at 33402, the main bottom at 33200 and the main 61.8% level at 33116.
For a look at all of today’s economic events, check out our economic calendar.