Uptrend remains unchanged; maintain long positions. The E-mini Dow formed a black candle yesterday. It declined 95 pts to close at 25,913 pts, off its high of 26,028 pts and low of 25,878 pts. However, yesterday’s black candle can be interpreted as a result of profit-taking activities following the recent gains. From a technical viewpoint, the 21-day SMA line is still pointing upwards, suggesting that the upward momentum is not diminished yet. Overall, we think that the market sentiment would stay bullish, as long as the previously-indicated 25,275-pt support is not violated at the closing.

As shown in the chart, we anticipate the immediate support level at 25,275 pts, ie the low of 15 Feb’s long white candle. If this level is taken out, look to 24,284 pts – determined near the lows of 23 and 28 Jan – as the next support. Towards the upside, we are eyeing the immediate resistance level at 26,268 pts, which was the high of 8 Nov 2018. The next resistance is maintained at the 26,966-pt record high.

Hence, we advise traders to stay long, following our recommendation of initiating long above the 22,400-pt level on 27 Dec 2018. At the same time, a trailing-stop is preferably set below the 25,275-pt threshold in order to secure part of the gains.

Source: RHB Securities Research - 1 Mar 2019