Maintain long positions. The E-Mini Dow was not able to sustain its intraday gains, ending the session 329 pts lower at 29,416 pts. Earlier during the session, it reached a high of 29,896 pts. The index has been showing signs of developing a minor correction over the past two sessions following a second attempt to cross above the 30,000- pt resistance mark last Friday. Based on the daily chart, we are not seeing a conclusive price rejection signal from said resistance yet. This should remain so, provided the 29,300-pt support level is not breached. We maintain our positive trading bias.

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

Support levels are revised to 29,300 pts and 28,781 pts – the low of 10 Nov. On the upside, the resistance is revised to 29,600 pts and followed by the 30,000-pt record high.

Source: RHB Securities Research - 19 Nov 2020