E-mini Dow Jones Industrial Average (YM) Futures Technical Analysis – May 28, 2019 Forecast
June E-mini Dow Jones Industrial Average futures are inching lower at the mid-session on Tuesday after giving back earlier gains. Helping to pressure the market were comments from President Trump that suggested a prolonged trade dispute between the United States and China, and an escalation of the dispute with additional tariffs.
At 16:08 GMT, June E-mini Dow Jones Industrial Average futures are trading 25612, down 8 or -0.04%.
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Trump said Monday that the U.S. was “not ready” to make a deal with China, before adding he expected one in the future. Trump also said tariffs on Chinese imports could go up ‘substantially.”
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. This could lead to an eventual test of the February 8 bottom at 24900.
The main trend will change to up on a move through 26694. This is highly unlikely, however, there is room for a normal 50% to 61.8% retracement.
The short-term range is 25215 to 25955. Its retracement zone is acting like support at 25585 to 25498.
The main range is 26694 to 25215. Its retracement zone at 25955 to 26129 is resistance. This zone stopped the rally at 25955 on May 16.
Daily Technical Forecast
Based on the early price action, the direction of the June E-mini Dow Jones Industrial Average into the close is likely to be determined by trader reaction to the short-term 50% level at 25585 and the uptrending Gann angle at 25567.
Bullish Scenario
A sustained move over 25585 will indicate the presence of buyers. If this move can generate enough upside momentum then look for a possible rally into a Gann angle price cluster at 25919 to 25926.
Bearish Scenario
A sustained move under 25585 will signal the presence of sellers. This could trigger a break into the short-term Fibonacci level at 25498. This is a potential trigger point for a spike into the next uptrending Gann angle at 25391. This is the last potential support angle before the 25215 main bottom.