E-mini Dow Jones Industrial Average (YM) Futures Technical Analysis – Trend Up, but Momentum Has Turned Down

June E-mini Dow Jones Industrial Average futures are inching lower in the pre-market session on Thursday as investors await a boatload of U.S. economic reports including weekly unemployment claims data that could reveal information on the pace of the economic recovery.

At 04:32 GMT, June E-mini Dow Jones Industrial Average futures are trading 34239, down 41, or -0.12%.

The report on U.S. weekly jobless claims will be released at 12:30 GMT. It is expected to show a total of 425,000 American filed for unemployment benefits in the week-ended May 22. In the week prior, jobless claims reached a fresh pandemic-era low of 444,000.

In other news, trading volumes are likely to lessen heading in the extended Memorial Day holiday weekend, which could exacerbate price moves.

Daily Swing Chart Technical Analysis

The main trend is up according to the daily swing chart, however, momentum is trending lower following the confirmation of Tuesday’s closing price reversal top.

A trade through 34483 will negate the closing price reversal top and signal a resumption of the uptrend. A move through 34402 will change the main trend to down.

The short-term range is 35000 to 33200. The index is currently trading inside its retracement zone at 34100 to 34312.

The minor range is 33200 to 34483. Its retracement zone at 33842 to 33690 is another potential support area.

The main support is the retracement zone at 33476 to 33116.

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 the short-term Fibonacci level at 34312.

Bullish Scenario

A sustained move over 34312 will indicate the presence of buyers. The next upside target is 34483. Taking out this level will put the Dow on a path toward its record high at 35000.

Bearish Scenario

A sustained move under 34312 will signal the presence of sellers. The first downside target is the 50% level at 34100. Since the main trend is up, look for a technical bounce on the first test of this level.

If 34100 fails as support, we could see an acceleration into the minor retracement zone at 33842 to 33690.