E-mini Dow Jones Industrial Average (YM) Futures Technical Analysis – Strong Upside Bias Over 33037

This post was originally published on this site

June E-mini Dow Jones Industrial Average futures are expected to open higher on Monday following a gap opening during the pre-market session and on the back of Friday’s robust U.S. jobs report that signaled the economy was moving forward at a faster-than-expected pace.

At 12:50 GMT, June E-mini Dow Jones Industrial Average futures are trading 33290, up 253 or +0.77%.

Shares of U.S. banks, industrial and material firms including Bank of America, JPMorgan Chase & Co, Boeing Co and Dow Inc, which are poised to benefit from an improving economy firmed about 1% each in premarket trading.

In economic news, the ISM will release its Services PMI report at 14:00 GMT. The report is expected to show the non-manufacturing sector rose to 58.3 from 55.3.

Daily Swing Chart Technical Analysis

The main trend is up according to the daily swing chart. The uptrend was reaffirmed when buyers gapped last week’s record high at 33134. The main trend will change to down on a trade through the nearest main bottom at 31951.

Daily Swing Chart Technical Forecast

The direction of the June E-mini Dow Jones industrial Average on Monday is likely to be determined by trader reaction to 33037.

Bullish Scenario

A sustained move over 33037 will indicate the presence of buyers. Taking out the intraday high at 33293 will indicate the buying is getting stronger. This could trigger an acceleration to the upside since there is no visible resistance.

Bearish Scenario

A sustained move under 33037 will signal the presence of sellers. If this move creates enough downside momentum then look for the selling to possibly extend into 32746. This is a potential trigger point for an acceleration to the downside.

Side Notes

A close under 33037 will form a potentially bearish closing price reversal top. If confirmed, this could trigger the start of a 2 to 3 day correction. A closing price reversal top doesn’t change the trend, but it could help alleviate some of the upside pressure.