E-mini Dow Jones Industrial Average (YM) Futures Technical Analysis – Strong Over 23796, Weak Under 23571

June E-mini Dow Jones Industrial Average futures are trading higher on Monday as the Bank of Japan added more stimulus to cushion the impact of the coronavirus and investors cheered news more countries were easing lockdowns, though the oil market took another tumble with storage facilities running short.

This is a big week as far as economic data, central bank decisions and earnings are concerned. Around 173 companies in the S&P 500 will report earnings this week, including Dow components Apple, Microsoft and Caterpillar.

At 10:48 GMT, June E-mini Dow Jones Industrial Average futures are trading 23891, up 233 or +0.98%.

Daily June E-mini Dow Jones Industrial Average

Daily Swing Chart Technical Analysis

The main trend is down according to the daily swing chart, however, momentum is trending higher. A trade through 24327 will change the main trend to up. A move through 22814 will signal a resumption of the downtrend.

The main range is 29506 to 18086. Its retracement zone at 23796 to 25144 is a potential resistance area.

The intermediate range is 26962 to 18086. Its retracement zone at 23571 to 22524 is potential support. It stopped the selling last week at 22814.

The short-term range is 18086 to 24327. If retracement zone at 21207 to 20470 is a potential support zone.

Daily Swing Chart Technical Forecast

Based on the early price action and the current price at 23891, the direction of the June E-mini Dow Jones Industrial Average on Monday is likely to be determined by trader reaction to the 50% level at 23796 and the Fibonacci level at 23571.

Bullish Scenario

A sustained move over 23796 will indicate the presence of buyers. The first upside target is the main top at 24327. This is a potential trigger point for an acceleration into the Fibonacci level at 25144.

Bearish Scenario

A sustained move under 23571 will signal the presence of sellers. If this move creates enough downside momentum then look for a possible break into 22814 to 22524.

Published by

James Hyerczyk

James A. Hyerczyk has worked as a fundamental and technical financial market analyst since 1982. His technical work features the pattern, price and time analysis techniques of W.D. Gann.