Stay long, with a trailing-stop set below the 25,607-pt support. The E-mini Dow ended higher to form a “Doji” candle yesterday. It gained 12 pts to settle at 26,014 pts, after hovering between a high of 26,164 pts and low of 25,940 pts. Technically speaking, the appearance of yesterday’s “Doji” candle merely indicates that buyers may be taking a pause after the recent surge. Since the 21-day SMA line is still pointing upwards, this indicates that the near-term bullish sentiment stays intact. Overall, we expect the market to move higher if the immediate 26,185-pt resistance is taken out decisively in the coming sessions.

As seen in the chart, we anticipate the immediate support level at 25,607 pts, ie the low of 23 Aug. Meanwhile, the next support is seen at 24,955 pts, determined from the low of 15 Aug’s “Hammer” pattern. To the upside, we are eyeing the immediate resistance level at 26,185 pts, situated at the previous high of 29 Aug. If this level is taken out decisively, the next resistance is maintained at the 26,684-pt historical high.

Therefore, we advise traders to stay long, in line with our initial recommendation to have long positions above the 24,600-pt level on 11 Jul. At the same time, a trailing-stop can be set below the 25,607-pt threshold in order to secure part of the profits.

Source: RHB Securities Research - 13 Sept 2018