Upside move would likely to continue; Stay long. The E-mini Dow formed a white candle last night. It rose 54 pts to close at 26,473 pts, after hovering between a high of 26,576 pts and low of 26,357 pts. From a technical perspective, the near term bullish sentiment stays intact, as the index continues to hover above the 21-day SMA line. In view of last night’s higher close, the E-mini Dow may further extend the upside swing that started from early July. Overall, we remain bullish on the E-mini Dow’s near term outlook.

As shown in the chart, we anticipate the immediate support at 25,966 pts, ie the low of 18 Sep. The next support would likely be at 25,607 pts, determined from the previous low of 23 Aug. On the other hand, we are eyeing the near term resistance at the 26,797-pt historical high. This is followed by the 27,000-pt psychological mark.

Thus, we advise traders to maintain long positions, in line with our initial recommendation to have long positions above the 24,600-pt level on 11 Jul. A trailing stop is preferably set below the 25,966-pt threshold in order to lock in part of the profits.

Source: RHB Securities Research - 28 Sept 2018