The uptrend is likely to continue, maintain long positions. The E-mini Dow formed a white candle last night. It rose 97 pts to close at 26,797 pts after oscillating between a high of 26,805 pts and low of 26,621 pts. Based on the current technical landscape, the market sentiment remains bullish, as the index has continued to stay above the rising 21-day SMA line. Given that the 14-day RSI indicator has recovered to a more positive reading at 66.99 pts, there is a possibility the uptrend should persist. Overall, we remain bullish on the E-mini Dow’s outlook.

As seen in the chart, we are eyeing the immediate support at 26,300 pts – this is set near the midpoint of 18 Jun’s long white candle. If a breakdown arises, the next support is seen at 25,891 pts, or 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.

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 26,300-pt threshold is preferable to lock in part of the gains.

Source: RHB Securities Research - 3 Jul 2019

Source: RHB Securities Research - 3 Jul 2019