Upside move is likely to continue; stay long. The E-mini Dow formed a white candle on Monday. It rose 233 pts to close at 23,268 pts, after oscillating between a high of 23,352 pts and low of 23,090 pts. From a technical perspective, we expect the rebound to continue. This is because the E-mini Dow recouped the previous session’s losses and stayed above the recent 21,452-pt support, implying that market sentiment is positive. Again, we think that the rebound – which started from 26 Dec 2018’s “Long White Day” candle – may persist.

Presently, the immediate support is seen at 22,400 pts, situated near the midpoint of 26 Dec 2018’s “Long White Day” candle. The crucial support is anticipated at 21,452 pts, ie the low of 26 Dec 2018. Towards the upside, we are eyeing the immediate resistance at 24,086 pts, determined near the high of 19 Dec 2018. The next resistance is maintained at the 25,000-pt psychological spot.

Therefore, we advise traders to stay long, in line with our initial recommendation to have long positions above the 22,400-pt level on 27 Dec 2018. A stop-loss is advisable below the 21,452-pt threshold in order to limit downside risk.

Source: RHB Securities Research - 2 Jan 2019