Bullish sentiment remains intact, stay long. The E-mini Dow ended higher to form a white candle last night. It rose 65 pts to close at 26,762 pts, off its high of 26,815 pts and low of 26,662 pts. Based on the current outlook, the index has been able to stay above the previously-indicated 25,891-pt support for more than a week – this implies that the buyers are still in control of the market. With the 21-day SMA line still edging upwards, this has led us to believe the upside swing that started off 13 Jun’s “Hammer” pattern may continue. Overall, we keep our bullish view on the E-mini Dow’s outlook.

According to the daily chart, the immediate support is seen at 26,300 pts – this is situated near the midpoint of 18 Jun’s long white candle. The next support will likely be at 25,891 pts, which was the low of 13 Jun’s “Hammer” pattern. To the upside, the near-term resistance is maintained at the 26,966-pt record high. This is followed by the 27,000-pt psychological mark.

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

Source: RHB Securities Research - 25 Jun 2019