E-mini Dow Jones Industrial Average (YM) Futures Technical Analysis – Trend Changed to Down on Tuesday

June E-mini Dow Jones Industrial Average futures are edging higher early Wednesday, following two days of selling pressure tied to a massive plunge in the U.S. crude oil market. On Tuesday, the blue chip cash market lost about 630 points, bringing its weekly decline to more than 1,000 points. The 30-stock average was dragged lower by Merck & Co., which lost 5.5%, and Boeing, which fell more than 5%.

At 07:13 GMT, June E-mini Dow Jones Industrial Average futures are trading 23109, up 180 or +0.79%.

Daily June E-mini Dow Jones Industrial Average

Daily Swing Chart Technical Analysis

The main trend is down according to the daily swing chart. The trend turned down on Tuesday when sellers took out the last swing bottom at 23079. The main trend will change to up on a trade through 24327.

The main range is 29506 to 18086. Its retracement zone at 23796 to 25144 is resistance. This zone stopped the rally at 24327 last Friday.

The intermediate range is 26962 to 18086. The market is currently trading inside its retracement zone at 22524 to 23571.

The new short-term range is 18086 to 24327. Its retracement zone at 21207 to 20470 is the new downside target.

Daily Swing Chart Technical Forecast

Based on the price action this week and the current price at 23109, the direction of the June E-mini Dow Jones Industrial Average the rest of the session on Wednesday is likely to be determined by trader reaction to the price cluster at 23571 to 23796.

Bearish Scenario

A sustained move under 23571 will indicate the presence of sellers. If this creates enough downside momentum then look for the selling to possibly extend into the intermediate 50% level at 22524. This is a potential trigger point for an acceleration to the downside with the next target zone coming in at 21207 to 20470.

Bullish Scenario

Look for sellers on the first test of 23571 to 23796. Overtaking the main 50% level at 23796 will indicate the buying is getting stronger. This could trigger a further rally into the main top at 24327.

The main top at 24327 is a potential trigger point for an acceleration to the upside with the next major target the main Fibonacci level at 25144.

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.