Initiate long positions, as the index has finally pushed above the 30,000-pt mark. After several attempts over the recent weeks, the E-Mini Dow finally managed to settle above the 30,000-pt resistance mark last Friday, advancing 266 pts to close at 30,198 pts. This marked its highest record close. This also effectively pushed the index above its multi-week congestion area, consequently signalling a good possibility that it is on the path of extending its uptrend. The RSI has also shown signs of turning upwards – indicating that the momentum is improving. Premised on this, we switch our trading bias to positive from negative.

Our previous short positions initiated at 29,629 pts – the closing level of 30 Nov – were closed out at 30,000-pt mark during Friday’s session. Concurrently, we initiate long positions. For risk-management purposes, a stop loss can be placed below the 29,428-pt mark.

The immediate support is revised to 29,850 pts and followed by 29,428 pts, which was the low of 30 Nov. Meanwhile, the immediate resistance is now set at 30,500 pts and followed by 30,750 pts.

Source: RHB Securities Research - 7 Dec 2020