Maintain long positions, while setting a new trailing-stop below the 25,764-pt level. The E-mini Dow formed a white candle last night. It gained 146 pts to close at 26,160 pts, after oscillating between a high of 26,203 pts and low of 25,980 pts. From a technical perspective, the index has marked a higher close vis-à-vis the previous sessions since 11 Sep, implying that the near-term upside movement is likely to continue. Moreover, this movement may extend the upside swing that started with 11 Sep’s “Bullish Engulfing” pattern. Overall, we keep our bullish view on E-mini Dow’s near-term outlook.

According to the daily chart, the immediate support is now seen at 25,764 pts, which was the low of 11 Sep’s “Bullish Engulfing” pattern. If price breaks down decisively, look to 24,955 pts – determined from the previous low of 15 Aug – as the next support. Towards the upside, we anticipate the immediate resistance at 26,185 pts, set at the high of 29 Aug, Meanwhile, the next resistance is seen at the 26,684-pt record high.

Recall that on 11 Jul, we initially recommended traders to initiate long positions above the 24,600-pt level. We continue to advise them to stay long for now, while setting a new trailing-stop below the 25,764-pt threshold. This is in order to lock in a larger part of the profits.

Source: RHB Securities Research - 14 Sept 2018