Maintain long positions. The E-Mini Dow continued its uptrend rebound yesterday, jumping 501 pts to settle at 35,713 pts – crossing above the immediate resistance and moving further above the 50-day average line. It opened higher at 35,251 pts and merely touched the day’s low of 35,807 pts before gradually climbing towards the day’s 35,807-pt high prior to the close. The latest bullish candlestick signals that the uptrend will persist in the medium term. Nevertheless, we expect the E-mini Dow to retrace mildly above the 50-day average line in the immediate term before moving higher – supported by the strengthening of the RSI above 50%. We stick to our positive trading bias.
Traders should stay in the long positions initiated at 35,212 pts. To manage trading risks, the initial stop-loss is set at the 34,626-pt support level.
The immediate support is set at 35,383 pts – 27 Oct’s low – followed by 34,986 pts, or 1 Dec’s high. The immediate resistance is eyed at 35,900 pts, or 26 Nov’s high, followed by 36,446 pts – 8 Nov’s high.
Source: RHB Securities Research - 8 Dec 2021
Created by rhboskres | Aug 26, 2024