Maintain long positions. The E-Mini Dow saw positive price action yesterday, rebounding higher to settle at 30,081 pts. The index had a weak opening, gap down to open at 29,903 pts. However, buying interest emerged near the day low 29,735 pts and pushing the index to day high 30,182 pts, breaching the physcological level of 30,000 pts. The bulls taking profits near the day high and saw the index retraced and close at 30,081 pts. Since December, the index is moving in a sideway fashion with very tight range traded. Meanwhile, the RSI is trending lower, indicating the momentum is growing weaker. Due to a weak momentum, we expect the index consolidating near 30,000 level. Combining last two days price action, we can see buying interest do appear near the range of 29750 and 29850 pts. Although the index is gyrating near 30,000 level with a tight range, as long as the downside support level is maintain, we are keeping our positive trading bias.

We recommend that traders stay in long positions for now. We initiated these at 30,033 pts, or the closing level of 11 Dec. For risk-management purposes, stop-loss can be placed below 29,750 pts.

The immediate support is revised to 29,850 pts, this is followed by 29,500. Moving up, the immediate resistance is set at recent high on 21 Dec ie. 30,333 pts, and followed by round figure 30,500 pts.

Source: RHB Securities Research - 24 Dec 2020