Bullish trend remains intact; stay long. The upward movement of the E-mini Dow continued as expected, as a white candle was formed last night. It gained 55 pts to close at 28,008 pts, after oscillating between a high of 28,059 pts and low of 27,926 pts. From a technical perspective, the uptrend is likely to persist, as the index has posted a second consecutive white candle and climbed above the 28,000-pt threshold. We view yesterday’s higher close as a continuation of the buyers extending the rebound from 23 Oct’s “Hammer” pattern. Overall, we keep our bullish view on the E-mini Dow’s outlook.

Judging from the current outlook, we anticipate the immediate support level at 27,337 pts, obtained from 6 Nov’s low. Meanwhile, the crucial support is seen at 26,588 pts, which was the low of 23 Oct’s “Hammer” pattern. Towards the upside, we are now eyeing the near-term resistance level at the 28,500-pt round figure. This is followed by the 29,000-pt psychological spot.

Hence, we advise traders to stay long, following our recommendation of initiating long above the 26,750-pt level on 16 Oct. A trailing stop can be set below the 27,337-pt threshold in order to secure part of the gains.

Source: RHB Securities Research - 19 Nov 2019