Maintain long positions. The E-Mini Dow struggled to move higher, following its recent uptrend, closing 3 pts higher at 35,480 pts. It opened lower at 35,448 pts, and gradually moved lower until the US trading session, when it touched the intraday low of 35,308 pts. Later in the session, strong buying interest emerged, bringing the index to its 35,480-pt close – slightly above the opening. The latest candlestick, which closed neutral – near yesterday’s close – suggests that the bulls and bears are at equal strength. This, coupled with the RSI pointing flat above the 60% level, leads us to expect the E-mini Dow to oscillate between the 35,308-pt immediate support and 35,504-pt resistance level. As it has yet to trigger the trailing-stop, we keep to our bullish trading bias.

We suggest traders stay with the long positions initiated at the closing level of 7 Oct, or 34,638 pts. To manage trading risks, the initial trailing-stop threshold is revised higher to 35,308 pts – the immediate support.

The immediate support level is pinned at 35,308 pts, or 21 Oct’s low. This is followed by the 34,906 pts, or 18 Oct’s low. On the upside, the immediate resistance is eyed at 35,504 pts or 3 Sep’s high, followed by 36,000 pts.

Source: RHB Securities Research - 22 Oct 2021