Bullish sentiment remains intact; stay long. The upside move of the E-mini Dow continued as expected as a white candle was formed last night. It gained 31 pts to close at 26,548 pts, off its high of 26,584 pts and low of 26,484 pts. As the E-mini Dow has marked a higher close above the rising 21-day SMA line, this can be viewed as the bulls extending their buying momentum. In view of the fact that the index has posted a white candle for the second consecutive day, this indicates that the rebound that started off 8 Mar’s “Hammer” pattern may go on.

As seen in the chart, the immediate support level is maintained at the 26,000-pt round figure, also situated near the low of 11 Apr. The next support would likely be at 25,213 pts, determined from the low of 8 Mar’s “Hammer” pattern. On the other hand, we are eyeing the immediate resistance level at 26,694 pts, which was the high of 24 Apr. Meanwhile, the next resistance is seen at the 26,966-pt historical high.

Hence, we advise traders to maintain long positions, following our recommendation of initiating long above the 26,000-pt level on 2 Apr. In the meantime, a trailing-stop can be set below the 26,000-pt mark as well in order to minimise the downside risk.

Source: RHB Securities Research - 30 Apr 2019