E-mini Dow Jones Industrial Average (YM) Futures Technical Analysis – Sellers Defending Downtrend at 25955

June E-mini Dow Jones Industrial Average futures are edging higher at the mid-session, the market is being underpinned by stronger-than-expected sentiment data and the removal of some tariffs offset lingering worries over U.S.-China trade relations.

The cash market Dow erased a 204-point drop, dragging futures higher. The market surged after the University of Michigan’s Surveys of Consumers showed consumer sentiment jumped to its highest level in 15 years to start off the month. Stocks also received a boost after CNBC reported the U.S. is poised to lift tariffs on steel and aluminum imports. The Trump administration also announced it would delay tariffs on automobiles, confirming a report from earlier in the week.

At 18:01 GMT, June E-mini Dow Jones Industrial Average futures are trading 25914, up 47 or +0.18%.

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 25215 will signal a resumption of the downtrend. The main trend will change to up on a move through 26694.

The minor trend is also down. A trade through 26016 will change the minor trend to up. This will shift momentum to the upside.

The major support is the February 8 bottom at 24900. This is followed by a major 50% level at 24122.

The short-term range is 26694 to 25215. Its retracement zone at 25955 to 26129 is the first upside target. The Dow has found resistance the last two days at the lower or 50% level at 25955.

The short-term retracement zone is very important to the structure of the chart pattern. Since the main trend is down, sellers are likely to come in to defend the trend on the initial tests of this zone. They are going to try to form a secondary lower top. Aggressive, counter-trend buyers on the other hand will try to drive the market through this zone in an effort to extend the rally.

Daily Technical Forecast

Based on the early price action and the current price at 25914, the direction of the June E-mini Dow Jones Industrial Average into the close will likely be determined by trader reaction to the short-term 50% level at 25955.

Bullish Scenario

A sustained move over 25955 will indicate the presence of buyers. This could drive the Dow into the minor top at 26016. If taking out this top creates enough upside momentum then look for the rally to extend into the short-term Fibonacci level at 26129, followed by a downtrending Gann angle at 26150.

Look for sellers on the first test of 26129 to 26150. Taking out 26150, however, is likely to trigger an acceleration into the downtrending Gann angle at 26422.

Bearish Scenario

A sustained move under 25955 will signal the presence of sellers. If this creates enough downside momentum then look for the selling to extend into the steep downtrending Gann angle at 25606. This is a potential trigger point for an acceleration to the downside with the next target the minor bottom at 25215.

This article was originally posted on FX Empire


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