E-mini Dow Jones Industrial Average (YM) Futures Technical Analysis – Testing Major Retracement Zone at 25652 to 25898

Based on the late session price action, the direction of the June E-mini Dow Jones Industrial Average into the close is likely to be determined by trader reaction to the 50% level at 25652.
James Hyerczyk
E-mini Dow Jones Industrial Average

June E-mini Dow Jones Industrial Average futures are pressing their high for the session as we head into the last two hours of cash market trading on Thursday. The market continues to be driven by expectations of looser monetary policy from the U.S. Federal Reserve.

Traders seem to be numb to the lingering trade dispute between the United States and China, and the new tariffs against Mexico that are scheduled to begin on Monday, June 10, instead choosing to respond to comments from Fed Chairman Jerome Powell, who said the central bank will keep an eye on current developments in the economy, and would do what it must to “sustain the expansion.”

At 06:06 GMT, June E-mini Dow Jones Industrial Average futures are trading 25635, up 77 or +0.30%.

Daily June E-mini Dow Jones Industrial Average

Daily Technical Analysis

The main trend is down according to the daily swing chart. However, momentum shifted higher on June 3 with the formation of a closing price reversal bottom and the subsequent follow-through confirmation.

The main trend will change to up on a move through 26694. A move through 24610 will negate the closing price reversal bottom and signal a resumption of the downtrend.

A closing price reversal bottom does not mean the trend has changed to up. It does often trigger the start of a 2 to 3 day counter-trend rally equal to 50% to 61.8% of the last swing down. That move was completed on Thursday. Now the fun begins.

The main range is 26694 to 24610. Its retracement zone at 25652 to 25898 is the primary upside target. Today’s intraday high is 25637.

Since the main trend is down, sellers could start coming in on the test of 25652 to 25898. They are going to try to form a secondary lower top. This is the standard move following a steep sell-off. The first leg up is short-covering, sellers re-emerge and the market heads lower. We’ll be looking for this chart pattern.

Taking out the upper level of the range at 25898 will indicate the buying is getting stronger.

Daily Technical Forecast

Based on the late session price action, the direction of the June E-mini Dow Jones Industrial Average into the close is likely to be determined by trader reaction to the 50% level at 25652.

Bullish Scenario

Taking out 25652 and sustaining the rally late in the session will indicate the buying is getting stronger. This could lead to a test of a downtrending Gann angle at 25670. This is a potential trigger point for an acceleration to the upside with the next target the Fibonacci level at 25898.

Bearish Scenario

A sustained move under 25652 late in the session will signal the presence of sellers. Turning lower for the session will indicate the selling is getting stronger. This could trigger a pullback into a steep uptrending Gann angle at 25378.

If 25378 fails then the first-leg or short-covering rally has probably run its course and the Dow will start retreating.

Don't miss a thing!

Discover what's moving the markets. Sign up for a daily update delivered to your inbox

Latest Articles

See All

Expand Your Knowledge

See All

Top Promotions

Top Brokers

IMPORTANT DISCLAIMERS
The content provided on the website includes general news and publications, our personal analysis and opinions, and contents provided by third parties, which are intended for educational and research purposes only. It does not constitute, and should not be read as, any recommendation or advice to take any action whatsoever, including to make any investment or buy any product. When making any financial decision, you should perform your own due diligence checks, apply your own discretion and consult your competent advisors. The content of the website is not personally directed to you, and we does not take into account your financial situation or needs.The information contained in this website is not necessarily provided in real-time nor is it necessarily accurate. Prices provided herein may be provided by market makers and not by exchanges.Any trading or other financial decision you make shall be at your full responsibility, and you must not rely on any information provided through the website. FX Empire does not provide any warranty regarding any of the information contained in the website, and shall bear no responsibility for any trading losses you might incur as a result of using any information contained in the website.The website may include advertisements and other promotional contents, and FX Empire may receive compensation from third parties in connection with the content. FX Empire does not endorse any third party or recommends using any third party's services, and does not assume responsibility for your use of any such third party's website or services.FX Empire and its employees, officers, subsidiaries and associates, are not liable nor shall they be held liable for any loss or damage resulting from your use of the website or reliance on the information provided on this website.
RISK DISCLAIMER
This website includes information about cryptocurrencies, contracts for difference (CFDs) and other financial instruments, and about brokers, exchanges and other entities trading in such instruments. Both cryptocurrencies and CFDs are complex instruments and come with a high risk of losing money. You should carefully consider whether you understand how these instruments work and whether you can afford to take the high risk of losing your money.FX Empire encourages you to perform your own research before making any investment decision, and to avoid investing in any financial instrument which you do not fully understand how it works and what are the risks involved.
FOLLOW US