Maintain long positions. The E-Mini Dow managed to narrow its latest session’s losses to 145 pts, ending at 29,720 pts after rebounding rather convincingly from an intraday low of 29,449 pts. The soft session set in after the index tested the historical high of 30,000 pts during the prior session. However, intraday movement did not suggest a price rejection from the said resistance level, and as such, we see this as just a minor pause by the bulls, and that the index’s overall upward price trajectory remains firmly in place. Until we see signs of price rejection, we are keeping our positive trading bias.

We recommend traders stay in long positions. We initiated these at 29,865 pts – the closing level of 16 Nov. For risk management purposes, a stop-loss can be placed below 29,300 pts.

Support levels are maintained at 29,600 pts, followed by 29,300 pts. Moving up, the resistance is set at the 30,000- pt record high, followed by 30,500 pts.

Source: RHB Securities Research - 18 Nov 2020