E-mini Dow Jones Industrial Average (YM) Futures Technical Analysis – Trapped Inside Major Retracement ZoneThe June Dow Jones Industrial Average is trading inside the retracement zone at 23796 to 25144. These are the major levels.
June E-mini Dow Jones Industrial Average futures are edging higher shortly after the cash market opening after clawing back earlier losses. The catalysts behind the early strength are a pair of U.S. economic reports that seemed to have calmed the nerves of investors.
First-time filings for unemployment insurance totaled 2.44 million last week, close to economist estimates. Investors weren’t spooked by the news because the number indicated the number of claims was flattening out.
At 13:59 GMT, June E-mini Dow Jones Industrial Average futures are trading 24565, up 46 or +0.19%.
Daily Swing Chart Technical Analysis
The main trend is up according to the daily swing chart although upside momentum has taken a slight dip since Tuesday.
A trade through 24765 will signal a resumption of the uptrend, while a move through 22704 will change the main trend to down.
The main range is 29506 to 18086. Its retracement zone at 23796 to 25144 is controlling the longer-term direction of the Dow. The average is currently trading inside this zone.
The intermediate range is 26962 to 18086. Its retracement zone at 23571 to 22524 is support.
The two zones form a support cluster at 23796 to 23571.
Daily Swing Chart Technical Forecast
Shortly after the opening on Thursday, the June Dow Jones Industrial Average is trading inside the retracement zone at 23796 to 25144. These are the major levels.
A sustained move over 24765 will indicate the presence of buyers. This should lead to a test of the next main top at 24792, followed closely by the Fibonacci level at 25144.
Taking out 25144 with conviction could trigger an acceleration to the upside with the next major target the March 3 top at 26962.
A sustained move under 24076 will be the first sign of weakness. This should lead to a test of the 50% level at 23796 and the Fibonacci level at 23571. Since the main trend is up, buyers are likely to step in.
If 23571 fails as support then look for an acceleration to the downside with the next major targets 22704 and 22524.