Technical Analysis

Dow Jones futures (YM) false break out of ascending triangle

  • Analysis of Dow Jones futures’ ascending triangle formation on June 12th and short-term targets identified while maintaining a bullish bias.
  • YM experienced a gap up on June 9th and tested the $34,221 resistance level, but bulls failed. Long-term resistance observed at the point of control line and 78% Fibonacci level.
  • Market likely to close the $33,910 gap on the daily chart before further upward movement, with potential support at the ascending triangle’s support line and 61% Fibonacci retracement.


On June 12th, we analyzed the ascending triangle formation on the daily chart in the Dow Jones futures. You can view that article here.

YM gapped up on June 9th and continued to rally while it tested the horizontal resistance level at $34,221. The bulls have failed on this attempt, so there are some short-term targets we can go for while still maintaining a bullish bias toward equities in general.

Where to from here?

Let us take a look at the ascending triangle zoomed out to get a better picture of the long-term price action. YM found resistance off the point of control line, which is often the case since there are high amounts of liquidity at those price levels. The resistance we saw recently also arrived at the 78% Fib level.

YM Daily chart showing volume profile, ascending triangle formation and fibonacci retracements

Zoom in on the daily chart, and the gap becomes clear at $33,910. It looks likely that the market will attempt to close this gap before moving higher, so there are possible trades all around.

Support is likely at the ascending triangle support line, which is also at the 61% Fib retracement level.

Daily cahrt zoomed in YM showing price gap