James Hyerczyk
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E-mini Dow Jones Industrial Average

June E-mini Dow Jones Industrial Average futures are edging lower early Wednesday and appears to be poised to drop even further as investors express renewed concerns about the global recovery from the coronavirus pandemic. On Tuesday, stocks tied to an economic recovery led the losses amid rising new coronavirus cases in the U.S. and abroad. Many of these stocks are components of the blue chip average.

At 06:26 GMT, June E-mini  Dow Jones Industrial Average futures are trading 32273, down 33 or -0.10%.

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Daily June E-mini Dow Jones Industrial Average

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. Taking out 30429 will change the main trend to down.

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

On the upside, potential resistance levels are a pair of minor pivots at 32365 and 32715.

On the downside, the short-term range is 30429 to 33116. Its 50% level at 31773 is the first target.

The main range is 29450 to 33116. Its retracement zone at 31283 to 30850 is the primary downside target and value area.


Daily Swing Chart Technical Forecast

The early price action suggests the direction of the June E-mini Dow Jones Industrial Average will be determined by trader reaction to 32365.

Bearish Scenario

A sustained move under 32365 will indicate the presence of sellers. If this move is able to generate enough downside momentum then look for the selling pressure to possibly extend into the short-term 50% level at 31773. Since the main trend is up, buyers are likely to come in on the first test of this level.

Bullish Scenario

A sustained move over 32365 will signal the presence of buyers. If this move can create enough upside momentum then look for a surge into the minor pivot at 32715.

Trader reaction to 32715 could determine the direction of the Dow futures contract the rest of this week. Aggressive counter-trend sellers are likely to show up on a test of this level. They are going to try to form a potentially bearish secondary lower top. Bullish trend traders are going to try to take out this level with eyes set on 33116.

Side Notes

The daily chart shows there is plenty of room to the downside with no visible support until 31773.

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