Maintain long positions. The E-mini Dow ended higher to form a “Doji” candle last night. It gained 16 pts to settle at 23,407 pts, after oscillating between a high of 23,767 pts and low of 23,079 pts. From a technical perspective, investor sentiment remains positive in the coming sessions. This is as the index continues to remain above the rising 10-day SMA line. In addition, as the 14-day RSI indicator is now rising higher without being overbought, the positive sentiment has been enhanced. Overall, we stay positive in our outlook for the E-mini Dow.

Currently, we anticipate the immediate support level at 22,900 pts, which was obtained near the low of 13 Apr. The next support is situated at 21,700 pts, ie near the midpoint of 6 Apr’s long white candle. On the other hand, we are now eyeing the immediate resistance level at the 24,500-pt round figure. Meanwhile, the next resistance will likely be at the 25,000-pt psychological mark.

To recap, we initially recommended traders to initiate long positions above the 20,280-pt level on 26 Mar. We continue to advise them to stay long for now while setting a trailing-stop below the 22,900-pt threshold. This is to lock in a larger part of the profits.

Source: RHB Securities Research - 17 Apr 2020