Hitting its new historical high; maintain long positions. The upward movement of the E-mini Dow continued as expected, as another white candle was formed last Friday. It rose to a high of 26,797 pts during the intraday session, before ending at 26,795 pts for the day. Market sentiment remains bullish in the near term, as the index marked a higher close vis-à-vis the previous sessions since 18 Sep. This may also further extend the upside swing that started from early July. In view that the 21-day SMA line is likely to turn higher, the bullish sentiment has therefore been enhanced.

As seen in the chart, we are eyeing the immediate support level at 25,966 pts, which was the low of 18 Sep. The next support is anticipated at 25,607 pts, determined from the previous low of 23 Aug. Towards the upside, we maintain the near-term resistance level at the 27,000-pt psychological mark. This is followed by the 27,500-pt round figure.

Hence, 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 is advisable to set below the 25,966-pt threshold in order to lock in part of the profits.

Source: RHB Securities Research - 24 Sept 2018