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

James Hyerczyk

June E-mini Dow Jones Industrial Average futures are trading higher shortly after the cash market open after the Federal Reserve game more details on how it will support the economy amid the coronavirus pandemic. The Fed announced a slew of programs, including loans geared towards small and medium sized businesses, that will total up to $2.3 trillion.

At 13:31 GMT, June E-mini Dow Jones Industrial Average futures are trading 23631, up 385 or +1.66%.

The Fed announcement was enough to outweigh another massive jump in weekly jobless claims. More than 6 million Americans filed for unemployment benefits the week-ending April 4. Economists were looking for an increase of 5 million.

Daily June E-mini Dow Jones Industrial Average

Daily Technical Analysis

The main trend is up according to the daily swing chart. Taking out Tuesday’s high signaled a resumption of the uptrend. The main trend will change to down on a break through the last main bottom at 20500.

The minor trend is also up. A trade through 22244 will change the minor trend to down. This will shift momentum to the downside.

The intermediate range is 26962 to 18086. The market is currently straddling is retracement zone at 22524 to 23571.

The main range is 29506 to 18086. Its retracement zone at 23796 to 25144 is the primary upside target.

Combining the two retracement zones creates a resistance cluster at 23571 to 23796. This zone is controlling the longer-term direction of the market.

Daily Technical Forecast

Based on the early price action and the current price at 23631, the direction of the June E-mini Dow Jones Industrial Average the rest of the session on Thursday is likely to be determined by trader reaction to 23571 and 23796.

Bullish Scenario

A sustained move over 23796 will indicate the presence of buyers. Taking out this level could drive the Dow into a downtrending Gann angle at 24386.

Overtaking 24386 could trigger an acceleration to the upside with the next target the Fibonacci level at 25144.

Bearish Scenario

A sustained move under 23571 will signal the presence of sellers. This could trigger a retest of the uptrending Gann angle at 23060.

Crossing to the weak side of 23060 could trigger a break into the 50% level at 22524.

A failure to hold 22524 could trigger a break into the minor bottom at 22244, followed by a pair of uptrending Gann angles at 21780 and 21414.

This article was originally posted on FX Empire