E-mini Dow Jones Industrial Average (YM) Futures Technical Analysis – Trader Reaction to 32365 Sets the Tone

June E-mini Dow Jones Industrial Average futures are edging higher during the pre-market session on Thursday despite firm Treasury yields. Helping to fuel both moves could be the upbeat Congressional testimony from Federal Reserve Chairman Jerome Powell and Treasury Secretary Janet Yellen.

At 10:58 GMT, June E-mini Dow Jones Industrial Average futures are trading 32396, up 77 or +0.24%.

Powell told the Senate Committee on Banking, Housing and Urban Affairs on Wednesday that 2021 was “going to be a very, very strong year in the most likely case.”

“There are of course risks to the upside and downside, but it should be a very strong year from a growth standpoint…Longer run we do have to raise revenue to support permanent spending that we want to do,” he added.

Daily Swing Chart Technical Analysis

The main trend is up according to the daily swing chart. However, momentum has been trending lower since the formation of the closing price reversal top on March 18.

A trade through 33116 will negate the closing price reversal top and signal a resumption of the uptrend. The main trend changes to down on a move through 30429.

The minor trend is also up. A trade through 31613 will change the minor trend to down. This will shift momentum to the downside.

The first minor range is 33116 to 32232. Its 50% level at 32674 is resistance. This level has stopped the rally three days in a row.

The second minor range is 31613 to 33116. The market is currently straddling its 50% level at 32365.

The short-term range is 30429 to 33116. Its 50% level at 31773 is a potential downside target.

The main retracement zone support is 31283 to 30850.

Daily Swing Chart Technical Forecast

The direction of the June E-mini Dow Jones Industrial Average on Thursday is likely to be determined by trader reaction to 32365.

Bullish Scenario

A sustained move over 32365 will indicate the presence of buyers. The first upside target is 32674. This is a potential trigger point for an acceleration to the upside with 33116 the next likely upside target.

Bearish Scenario

A sustained move under 32365 will signal the presence of sellers. Taking out 32232 will indicate the selling is getting stronger. This could trigger an acceleration into 31773.

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