E-mini Dow Jones Industrial Average

E-mini Dow Jones Industrial Average (YM) Futures Technical Analysis – Big Buying Volume Could Trigger Breakout over 26054

The blue chip Dow Jones Industrial Average is trying to mount a comeback after early session weakness threatened to take out a key support area. The strong recovery is impressive, but gains remain limited because of lingering fears over an escalating trade dispute between the United States and China.

The Dow rallied to its high for the session after the White House confirmed that a Chinese delegation would be attending a key meeting in Washington, however, gains were pair when China said it would take “necessary” countermeasures if the U.S. raises tariffs Friday as President Trump threatened on Sunday.

At 17:03 GMT, June E-mini Dow Jones Industrial Average futures are trading 26022, up 49 or +0.20%.

E-mini Dow Jones Industrial Average
Daily June E-mini Dow Jones Industrial Average

Daily Technical Analysis

The main trend is down according to the daily swing chart. A trade through 26694 will change the main trend to up. However, with this type of sell-off, a closing price reversal bottom is likely to occur first.

The minor trend is also down. A trade through 26518 will change the minor trend to up. This will also shift momentum to the upside.

The main range is 25246 to 26694. Its retracement zone at 25967 to 25796 is currently being tested. This area is controlling the near-term direction of the market.

The short-term range is 26694 to 25751. If there is a late session rally then look for a move into its retracement zone at 26223 to 26334.

Daily Technical Forecast

Based on the current price at 26022, the direction of the June E-mini Dow Jones Industrial Average into the close is likely to be determined by trader reaction to the downtrending Gann angle at 26054.

Bullish Scenario

Taking out 26054 and sustaining the move will indicate the presence of buyers. If this move creates enough upside momentum then look for the rally to possible extend into the short-term retracement zone at 26223 to 26334.

Bearish Scenario

A sustained move under 26054 will signal the presence of sellers. The next support is the 50% level at 25967, followed by a pair of Gann angles at 25918 and 25873.

If 25873 fails then look for the selling to extend into a Fib level at 25796 then yesterday’s low at 25751. If this price fails then look for the selling to extend into another set of uptrending Gann angles at 25625 and 25582.

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.