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E-mini Dow Jones Industrial Average (YM) Futures Technical Analysis – Needs to Hold 34686 to Sustain Upside Momentum

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June E-mini Dow Jones Industrial Average futures are edging higher during the pre-market session, posting another record high in the process.

The early rally came after last week’s trading ended on an upbeat note with the blue chip average hitting a fresh all-time high on Friday. The late-week move came on the heels of a far-weaker-than-expected April jobs report, which showed that U.S. employers added 266,000 net payrolls last month. Economists polled by Dow Jones had expected nearly a million additions.

At 1:45 GMT, June E-mini Dow Jones Industrial Average futures are trading 34813, up 127 or 0.37%.

Treasury yields plunged after the release of the jobs report as investors increased bets on the Fed holding off on any tightening of policy. Persistently low yields make equities a more attractive investment.

Daily Swing Chart Technical Analysis

The main trend is up according to the daily swing chart. The uptrend resumed earlier in the session when buyers took out Friday’s high at 34728. The main trend will change to down on a trade through 33572.

The new minor range is 33572 to 34814. Its 50% level at 34193 is the nearest support. This level will continue to rise as the market makes new highs.

The new short-term range is 31951 to 34814. Its 50% level is currently at 33383. It is also rising support.

Daily Swing Chart Technical Forecast

The direction of the June E-mini Dow Jones Industrial Average on Monday is likely to be controlled by 34686.

Bullish Scenario

A sustained move over 34686 will indicate the presence of buyers. Taking out the intraday high at 34814 will indicate the buying is getting stronger.

Bearish Scenario

A sustained move under 34686 will signal the presence of sellers. This will put the Dow in a position to form a potentially bearish closing price reversal top. If the selling pressure increases then look for the move to extend into the rising pivot, currently at 34193.

We could see a technical bounce on the first test of 34193, but if it fails then look for a potential acceleration to the downside.

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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