Maintain short positions. The E-Mini Dow once again tested the 30,000-pt resistance mark, but was unable to close above this level during the latest session. It closed 64 pts higher at 29,932 pts after swinging in a relatively narrow trading range of 29,755 – 30,092 pts. As highlighted in our recent notes, the index has overshot the said resistance point on an intraday basis, on multiple occasions during the past two weeks – indicating the bulls’ strong intention to push the index away from its three-week congestion area. However, in order to signal an extension of its multi-month uptrend, we believe the index has to close above the 30,000-pt resistance level. For now, we are keeping our negative trading bias.

We recommend traders 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.

We are keeping the immediate support at 29,428 pts, which was the low of 30 Nov, followed by the 29,000-pt round figure. The immediate resistance is pegged at 30,000 pts; followed by 30,168 pts – the record intraday high.

Source: RHB Securities Research - 4 Dec 2020