Maintain long positions. The E-Mini Dow experienced a positive price reversal during the latest session after it came close to testing the 29,850 pts immediate support with a low of 28,852 pts – this was before it rebounded to close the day 113 pts higher at 30,170 pts. As mentioned in our previous report, the index’s upward moves in recent weeks has lacked momentum. However, given the latest positive price reaction from the abovementioned immediate support level – and the fact the E-mini Dow continues to hold above the 30,000 pts psychological mark – we have no technical confirmation to turn bearish on the index’s outlook. Hence, we are keeping to our positive trading bias on the assumption that the positive trend will carry on.

We recommend traders stay in long positions. We initiated these at 30,198 pts, ie the closing level of 4 Nov. For risk-management purposes, a stop loss can be placed below the 29,428-pt mark.

We are keeping the immediate support at 29,850 pts, which is followed by 29,428 pts, or the low of 30 Nov. The overhead resistance is still pegged at 30,265 pts – 7 Nov’s high – and followed by 30,500 pts.

Source: RHB Securities Research - 9 Dec 2020