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E-mini Dow Jones Industrial Average (YM) Futures Technical Analysis – Potential Breakout Over 25144 Fib Level

June E-mini Dow Jones Industrial Average stocks are surging at the mid-session, helped by growing optimism over the reopening of the U.S. economy as several more states lifted restrictions over the long Memorial Day holiday weekend. The blue chip average was also supported by a potential coronavirus vaccine. The 30-stock average also traded at levels not seen since early March, jumping above 25,000.

At 16:24 GMT, June E-mini Dow Jones Industrial Average futures are trading 24985, up 561 or +2.30%.

CNBC reported that American biotech company Novavax said Monday it started the first human study of its experimental coronavirus vaccine. The company said it expects initial results on safety and immune responses in July. Last week, another biotech Moderna reported positive development on its vaccine trial where all 45 participants had developed coronavirus antibodies. There are 10 vaccines in clinical evaluation and 114 in pre-clinical evaluation, according to a running tally by Fundstrat.

Daily Swing Chart Technical Analysis

The main trend is up according to the daily swing chart. The trade through 24765 signaled a resumption of the uptrend after several days of sideways activity. A trade through 22704 will change the main trend to down.

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The minor trend is also up. A trade through 24076 will change the minor trend to down. This will also shift momentum to the downside.

The main range is 29506 to 18086. Its retracement zone at 23796 to 25144 is controlling the longer-term direction of the Dow. The market is currently trading at the upper-end of its zone.

On the downside, additional support is being provided by the 23571 to 22524 retracement zone.

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

Daily Swing Chart Technical Forecast

Based on the early price action and the current price at 24985, the direction of the June E-mini Dow Jones Industrial Average the rest of the session on Tuesday is likely to be determined by trader reaction to the main Fibonacci level at 25144.

Bullish Scenario

A sustained move over 25144 will indicate the buying is getting stronger. This could trigger an acceleration to the upside with the next major target the March 3 main top at 26962.

Bearish Scenario

A sustained move under 25144 will indicate the buying is getting weaker or the selling stronger. If this creates enough downside momentum then look for a possible break into the minor bottom at 24076. This is followed by a support cluster at 23796 to 23571.

For a look at all of today’s economic events, check out our economic calendar.

This article was originally posted on FX Empire

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