Stay long, with a trailing-stop set below the 22,545-pt support. The E-mini Dow ended lower on a black candle last night. It lost 489 pts to close at 23,391 pts. However, technically speaking, given that the index has managed to stay above the previously indicated 22,545-pt support for a week, this suggests that the positive sentiment remains intact. Moreover, the 10-day SMA line is still edging upwards, suggesting that the upward momentum has not diminished so far. Overall, we maintain a positive view on the E-mini Dow’s outlook.

As shown in the chart, we are eyeing the immediate support level at 22,545 pts, ie near the high of 27 Mar. Meanwhile, the next support is seen at 21,700 pts, which is situated near the midpoint of 6 Apr’s long white candle. To the upside, the immediate resistance level is seen at the 24,000-pt round figure. If a decisive breakout occurs, the next resistance is maintained at the 25,000-pt psychological spot.

Therefore, we advise traders to stay long, following our recommendation of initiating long above the 20,280-pt level on 26 Mar. A trailing-stop can be set below the 22,545-pt mark to secure part of the gains.

Source: RHB Securities Research - 16 Apr 2020