June E-mini Dow Jones Industrial Average futures are trading sharply higher as we approach the last hour of cash market trading. Today’s surge represents the first serious attempt at a rally in about three weeks. The move is being fueled by and easing of trade tensions amid optimistic comments by China and Mexico.
Federal Reserve Chairman Jerome Powell also fired up investors by signaling the central bank was ready to step in and save the economy if necessary by easing monetary policy.
At 07:32 GMT, June E-mini Dow Jones Industrial Average futures are trading 25282, up 413 or +1.66%.
Daily Technical Analysis
The main trend is down according to the daily swing chart, but momentum shifted to the upside on Monday with the formation of a potentially bullish closing price reversal bottom and its subsequent confirmation earlier today.
Although the chart pattern doesn’t indicate a change in trend to up, it usually fuels a 2 to 3 day counter-trend rally equal to 50% to 61.8% of the last break.
A trade through 24610 will negate the chart pattern and signal a resumption of the downtrend.
The short-term range is 26694 to 24610. If the strong upside momentum continues over the next 2 to 3 days then look for a surge into its retracement zone at 25652 to 25898.
On the downside, the major support is a long-term 50% level at 24122.
Daily Technical Forecast
The daily chart indicates there is plenty of room to the upside with the next target the 50% level at 25652. On the downside, the nearest support is a long-term uptrending Gann angle at 25058.
Given the upside target, the lack of resistance and the confirmation of the potentially bullish chart pattern, the June E-mini Dow Jones industrial Average appears to have an easy shot of at least 25652.
This article was originally posted on FX Empire
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