Market hits fresh new record high; stay long. The E-mini Dow formed a long white candle last night, surging 333 pts to close at 28,841 pts, off the session’s low of 28,538 pts. From a technical perspective, the bullish trend is likely to continue after the index posted a second consecutive white candle and hit its new record high. Furthermore, the E-mini Dow has taken out the 28,721-pt resistance mentioned previously, suggesting additional upward momentum may be present in the coming sessions. Overall, we stay upbeat on the index’s outlook.

According to the daily chart, the immediate support level is seen at 28,242 pts, which was defined from the low of 19 Dec 2019. Meanwhile, the next support is anticipated at 27,726 pts, or the low of 10 Dec 2019’s “Hammer” pattern. On the other hand, we are now eyeing the near-term resistance level at the 29,000-pt psychological mark. This is followed by the 29,500-pt round figure.

Therefore, we advise traders to stay long, in line with our initial recommendation to have long positions above the 28,159-pt level on 17 Dec 2019. At the same time, a trailing-stop can be set below the 28,242-pt threshold to minimise the risk per trade.

Source: RHB Securities Research - 3 Jan 2020