Maintain short positions. The E-Mini Dow is looking to cross the immediate resistance despite falling 17 pts to settle at 35,749 pts on Wednesday. The index started off at 35,762 pts but dipped to the 35,532-pt session low before climbing towards the 35,790-pt day high. Amidst the bullish momentum, it closed near the day’s high. If the E-Mini Dow manages to surpass the immediate resistance, the follow-through momentum may lift it higher towards 36,105 pts. Conversely, should the bears decide to take profit, the 35,383-pt level will provide strong support. The The RSI has been observed breaching the trendline, which indicates that the bullish momentum is picking up pace again. As of now, we maintain our bearish trading bias until the stop-loss point is breached.

Traders are avised to stick with the short positions initiated at 35,992 pts, ie the closing level of 10 Nov. To manage the trading risks, the stop-loss threshold is fixed at 35,900 pts.

The immediate support is pinned at 35,383 pts – 27 Oct’s low – and followed by the 35,000-pt round figure. The immediate resistance remains at 35,777 pts – 26 Oct’s high – and followed by 36,105 pts, ie 17 Nov’s high.

Source: RHB Securities Research - 25 Nov 2021