Maintain short positions. The E-Mini Dow again attempted to close above the 30,000-pt critical resistance in the latest trade. The index reached a high of 30,057 pts before narrowing its advancement to settle 121 pts higher at 29,750 pts. The index’s multiple unsuccessful attempts over the past 3.5 weeks to close above the 30,000-pt level continues to reinforce the strength of the said psychological mark. While we note that the index’s recent attempts to close above this threshold has been much stronger, as witnessed by the intraday crossings of the said resistance level, the index’s uptrend would remain capped, until it crosses above the 30,000-pt level at the closing. Maintain our negative trading bias.

We recommend traders to stay in short positions. We initiated these at 29,629 pts – the closing level of 30 Nov. For risk-management purposes, a stop-loss can be placed above 30,000 pts.

Support levels are revised to 29,428 pts – the low of 30 Nov, and the 29,000-pt round figure. Meanwhile, the immediate resistance is set at 30,000-pt mark; this is followed by 30,168 pts – the record intraday high.

Source: RHB Securities Research - 2 Dec 2020