Market recorded its fresh new record high; stay long. The upward movement of the E-mini Dow has continued as expected, as another white candle was formed last night. It rose 121 pts to close at 27,380 pts, after oscillating between a high of 27,450 pts and low of 27,274 pts. Market sentiment remains bullish, as the aforementioned white candle was the second one in two consecutive sessions. Furthermore, the index has marked a higher close above the rising 21-day SMA line and hit its new historical high, this can be viewed as buyers extending the buying momentum. Overall, we believe the bullish outlook remains intact.

Currently, we anticipate the immediate support level at 26,847 pts, ie 31 Oct’s low. If a breakdown arises, the next support is maintained at 26,588 pts, situated at the low of 23 Oct’s “Hammer” pattern. Towards the upside, the nearterm resistance level is seen at the 27,500-pt round figure. This is followed by the 28,000-pt psychological mark.

Therefore, we advise traders to maintain long positions, following our recommendation of initiating long above the 26,750-pt level on 16 Oct. For now, a new trailing-stop can be set below the 26,847-pt threshold in order to minimise the risk per trade.

Source: RHB Securities Research - 5 Nov 2019