Uptrend would likely continue; stay long. The upward movement of the E-mini Dow has continued as expected, as another white candle was formed yesterday. It gained 234 pts to close at 26,763 pts, off its high of 26,804 pts and low of 26,510 pts. Market sentiment remains bullish, as the aforementioned white candle was the third one in three consecutive sessions. Furthermore, the index has successfully taken out the previously-indicated 26,694-pt resistance, and this can be viewed as buyers extending the buying momentum. Overall, we believe the bullish outlook remains intact in the coming sessions.

Based on the daily chart, the immediate support is seen at 26,300 pts, situated near the midpoint of 18 Jun’s long white candle. The next support would likely be at 25,891 pts, determined from the low of the 13 Jun’s “Hammer” pattern. To the upside, we are now eyeing the near-term resistance at the 26,966-pt record high. This is followed by the 27,000-pt psychological mark.

Hence, we advise traders to maintain long positions, in line with our initial recommendation to have long positions above the 25,437-pt level on 7 Jun. A trailing-stop can be set below the 25,891-pt threshold in order to lock in part of the gains.

Source: RHB Securities Research - 21 Jun 2019