Maintain long positions. The E-Mini Dow took profits from the recent peak yesterday, falling 103 pts to close at 36,209 pts – it rebounded from the intraday low to close above the immediate support. The index began lower at 36,289 pts, and whipsawed downwards throughout the session, which saw it touch the intraday high and low of 36,324 pts and 36,066 pts. It then rebounded moderately from the bottom before closing. The latest “Bearish Harami” candlestick reversal pattern signals the uptrend momentum has reached its peak, while the reversal towards the south is imminent – in line with our earlier expectations. Due to the cautious mode, we revise the stoploss threshold higher. However, since the stop-loss has not been breached, we keep to our bullish trading bias.

Traders should stick to long positions initiated at 35,800 pts, or the closing level of 1 Nov. To manage trading risks, the initial stop-loss threshold is adjusted higher at 36,076 pts.

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

Source: RHB Securities Research - 10 Nov 2021