Maintain long positions. The E-Mini Dow closed in a neutral position after oscillating during the intraday session yesterday. It settled merely 7 pts higher at 35,753 pts. It opened at 35,745 pts, and oscillated between 35,567 pts and 35,859 pts, before reclaiming slightly above its opening at the close. The uptrend reversal that started from 2 Dec remains intact as it retained above the 50-day average line during the latest session – while maintaining its recent “higher high” bullish pattern. A fresh “higher high” bullish structure will likely develop if the index surpasses the 35,900 immediate resistance. In the immediate term, we expect the E-Mini Dow to trade range bound between the 35,383-pt support and 35,900-pt resistance. As long as the index stays above the 50-day average line, the uptrend will remain intact. Unless the stop-loss is breached, we stay with our positive trading bias.

We suggest traders keep the long positions initiated at 35,212 pts. For risk management, the stop-loss is set at 34,986 pts.

The immediate support is eyed 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 - 10 Dec 2021