Maintain long positions. The E-Mini Dow persisted its uptrend movement as it climbed 63 pts to settle at 35,620 pts yesterday – it was attempting to surpass Friday’s high of 35,645 pts. The index opened slightly lower at 35,499 pts and touched the 35,451-pt day low ahead of the start of the Asian trading session. Buying interest then emerged to shift the direction northwards towards the end of the session. It hit the day’s high of 35,670 pts before the close. The latest white body candlestick marked another new high and suggests the bulls are persisting with the momentum towards uncharted territory. With the strengthening of the RSI in the 65% range, this gives an indication that the medium-term positive bias remains intact. As we expect the bullish momentum to drive the E-Mini Dow towards 36,000 pts before retracing lower, we keep to our positive trading bias.

We recommend traders stick to the long positions initiated at the closing level of 7 Oct, or 34,638 pts. To manage the trading risks, the trailing-stop threshold is revised higher at 35,451 pts.

The immediate support level is revised at 35,451 pts, or 25 Oct’s low. This is followed by 35,308 pts, ie 21 Oct’s low. On the upside, the immediate resistance is pegged at 36,000 pts before possibly hitting the 36,500-pt level.

Source: RHB Securities Research - 26 Oct 2021