Positive sentiment remains intact; stay long. The E-mini Dow formed a white candle last night. It rose 571 pts to close at 23,880 pts after oscillating between a high and low of 23,922 pts and 23,250 pts. On a technical basis, the index has successfully recouped the previous day’s losses and marked a higher close above the rising 10-day SMA line – this implies the positive momentum remains unchanged. Furthermore, the 14-day RSI indicator recovered to a more positive reading at 54.85 pts, enhancing the positive sentiment as well. Overall, we stay positive on the E-mini Dow’s outlook.

Presently, the immediate support level is seen at 22,545 pts, which was determined near 27 Mar’s high. The next support should likely be at 21,700 pts – set near the midpoint of 6 Apr’s long white candle. On the other hand, we anticipate the resistance level at the 24,000-pt round figure. This is followed by the 25,000-pt psychological mark.

Hence, we advise traders to maintain long positions, since we initially recommended initiating long above the 20,280-pt level on 26 Mar. At the same time, a trailing-stop can be set below the 22,545-pt threshold to lock in part of the profits.

Source: RHB Securities Research - 15 Apr 2020