Upside move is likely to continue; stay long. The upward movement of the E-mini Dow continued as expected, as a white candle was formed last night. It gained 82 pts to close at 25,488 pts, after oscillating between a high of 25,606 pts and low of 25,385 pts. From a technical viewpoint, the upward momentum looks likely to continue, as the index has posted a second consecutive white candle. In view of the fact that the 14-day RSI indicator is now rising higher without being overbought, the bullish sentiment has been enhanced. Overall, we keep our bullish view on the E-mini Dow’s outlook.

As seen in the chart, the immediate support level is seen at 24,284 pts, ie near the lows of 23 and 28 Jan. If this level is taken out, the next support is anticipated at the 24,000-pt psychological spot. To the upside, we are eyeing the immediate resistance level at 26,088 pts, which was the previous high of 3 Dec 2018. Meanwhile, the next resistance is seen at the 26,966-pt record high.

Hence, 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 trailing-stop is advisable to set below the 24,284-pt threshold in order to secure part of the profits.

Source: RHB Securities Research - 14 Feb 2019