Maintain long positions. The E-Mini Dow managed to establish a foothold above the 50-day SMA line. It rose 33 pts yesterday to settle stronger at 35,746 pts. It started at 35,780 pts, and after whipsawing between 35,926 pts and 35,588 pts, it closed below the immediate resistance of 35,900 pts. For the next immediate session, the index may consolidate sideways before staging a fresh attempt to cross the immediate resistance. In the event that the bears take profits, downside support could be found near the 50-day SMA line, or at least the 35,383-pt level. As long as the index stays above the moving average line, the uptrend structure will remain intact. For now, we stay with our positive trading bias.

We advise traders to keep the long positions initiated at 35,212 pts. For risk management, the stop-loss is revised higher to 34,986 pts from 34,626 pts.

The immediate support is marked at 35,383 pts (27 Oct’s low) followed by 34,986 pts, or the high of 1 Dec. The immediate resistance remains at 35,900 pts (26 Nov’s high), followed by 36,446 pts, which was 8 Nov’s high.

Source: RHB Securities Research - 9 Dec 2021