Bullish trend remains intact; stay long. After the market rose for four sessions in a row, the E-mini Dow ended lower to form a black candle last night. It declined 144 pts to close at 26,610 pts, after oscillating between a high of 26,739 pts and low of 26,577 pts. However, the near-term bullish trend stays unchanged as this candle can only be viewed as buyers probably taking a breather after the recent surge. Since the 21-day SMA line is still pointing upwards, this indicates that the market sentiment remains bullish. Overall, we believe the upside swing that started from early July would likely continue in the coming sessions.

According to the daily chart, the immediate support level is seen at 25,966 pts, situated at the low of 18 Sep. Meanwhile, the next support is maintained at 25,607 pts, defined from the previous low of 23 Aug. On the other hand, we are now eyeing the near-term resistance level at the 26,797-pt record high. This is followed by the 27,000-pt psychological spot.

Therefore, we advise traders to stay long, following our recommendation of initiating long above the 24,600-pt level on 11 Jul. In the meantime, a trailing-stop can be set below the 25,966-pt threshold in order to secure part of the profits.

Source: RHB Securities Research - 25 Sept 2018