RHB Retail Research

E-Mini Dow: Surpassing Above the Immediate Resistance

Publish date: Mon, 13 Dec 2021, 08:45 AM
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RHB Retail Research

Maintain long positions. The E-Mini Dow displayed positive momentum last Friday after rising 214 pts to close at 35,967 pts – settling above the 35,900-pt immediate resistance. It opened at 35,749 pts and whipsawed in an uptrend fashion between 35,705 pts and 35,992 pts near its close – bouncing off strongly following an intraday pullback towards the day’s high prior to the close. The recent bullish candlestick breaching above the immediate resistance suggests a fresh “higher high” bullish structure has developed. Hence, a bullish continuation above this level is expected to persist towards the next resistance at 35,446 pts, ie the E-Mini Dow’s historical high. Unless the momentum reverses, we stick with our positive trading bias.

We suggest traders stay with the long positions initiated at 35,212 pts. For risk-management purposes, a trailingstop point is introduced at 35,383 pts.

The immediate support is eyed at 35,900 pts – 26 Nov’s high – and followed by 35,383 pts, or the high of 27 Oct’s low. The immediate resistance is revised at 36,446 pts, which was 8 Nov’s high. This is followed by the 37,000-pt round number.

Source: RHB Securities Research - 13 Dec 2021

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