The upside move is likely to continue – stay long. The E-mini Dow formed a white candle last night. It gained 105 pts to close at 26,117 pts after oscillating between a high of 26,153 pts and low of 25,891 pts. From a technical viewpoint, market sentiment remains positive. This is because the index has recouped the previous session’s losses and marked a higher close above the rising 21-day SMA line. In addition, the 14-day RSI indicator recovered to a more positive reading at 57.94 pts, enhancing the positive sentiment. Overall, we keep our bullish view on the Emini Dow’s outlook.

As seen in the chart, we are eyeing the immediate support at 25,437 pts, which was the low of 6 Jun. If this level is taken out, look to 24,610 pts – the recent low of 3 Jun – as the next support. To the upside, the immediate resistance is seen at 26,289 pts, which is situated at the high of 10 Jun. Meanwhile, the next resistance is maintained at 26,694 pts – this was determined from the previous high of 24 Apr.

Hence, we advise traders to maintain long positions, since we initially recommended initiating long above the 25,437-pt level on 7 Jun. A trailing-stop set below the 25,437-pt mark is preferable to limit the downside risk.

Source: RHB Securities Research - 14 Jun 2019