Maintain long positions. The E-Mini Dow reached another record intraday high after it briefly surpassing the previous record of 30,325 pts with 30,340 pts before settling 132 pts stronger at 30,293 pts – a record close. The inability of the index to sustain its intraday breakout from the previous record high was in line with its behaviour over the past weeks. While we have been highlighting this behaviour as a losing momentum sign, at this juncture there are still no negative price signals to confirm a trend change to negative from positive. We are still looking at the downside breach of 29,848 pts for such confirmation. For now, we stay with the trend and keep to our positive trading bias.

For now, we recommend traders stay in long positions. We initiated these at 30,033 pts, or the closing level of 11 Dec. For risk-management purposes, a stop-loss can now be placed below the 29,848-pt mark.

The immediate support target is revised to the 30,000-pt round figure and followed by 29,848 pts. Conversely, the immediate resistance is set at 30,325 pts – the high of 14 Dec – and followed by 30,500 pts

Source: RHB Securities Research - 18 Dec 2020