Maintain long positions. The E-Mini Dow ended the week with a new high after breaching the immediate resistance level to settle 206 pts up at 36,215 pts – this comes despite retracing from the intraday high of 36,375 pts. The index began on a neutral tone at 35,999 pts and oscillated in a sideways fashion during the Asian trading session, which saw it hit the intraday low of 35,949 pts. Buying interest then emerged to propel the index northwards to hit the day’s peak at 36,375 pts during mid US trading session, before profit taking activities occurred moderately towards the closing at 36,215 pts. The latest session indicates the positive momentum will likely continue in the medium term, with a mild pullback anticipated in the immediate session towards the support of the 35,777-pt level given the RSI level has reached the 70% overbought territory. As such, we keep to our bullish trading bias.

Traders should stick to the long positions initiated at 35,800 pts, or the closing level of 1 Nov. To control the trading risks, the initial stop-loss threshold is revised higher at 35,777 pts.

The immediate support remains at 36,076 pts (4 Nov’s high), followed by 35,777 pts – 26 Oct’s high. Meanwhile, the immediate resistance is sighted at 36,500 pts – the high of 4 Nov – followed by 37,000 pts.

Source: RHB Securities Research - 8 Nov 2021