Market outlook is considered bullish. Today, we analyse the E-mini Dow’s longer-term trend based on its weekly chart. As seen in the chart, we believe the market trend is still considered bullish. This is because the index has remained above the recent low of the 24,610-pt support. Moreover, the E-mini Dow is still trading above the rising 50-week SMA line, suggesting that the buyers may extend their upward momentum in the coming sessions. We view last week’s black candle as a technical pullback only. This was after the market rebound that began from 7 Jun’s “Bullish Engulfing” pattern.

Judging from the weekly chart, the immediate support is seen at 24,610 pts, which was determined from the low of 7 Jun’s “Bullish Engulfing” pattern. The next support is anticipated at 21,452 pts, ie the lowest point in 2018. Towards the upside, we are eyeing the resistance at the 27,000-pt psychological spot. This is followed by the 28,000-pt round figure.

Overall, we advise traders to stick to long positions, as signs of a significant reversal have not emerged yet. For more details, please refer to our 4 Jul 2019 report.

Source: RHB Securities Research - 5 Jul 2019