Maintain long positions. The E-Mini Dow persisted its bullish momentum ahead of yesterday’s intraday profittaking, as it rose 104 pts to close at 36,282 pts in its attempt to hit the 36,446-pt resistance. The index opened at 36,180 pts and then dragged softly towards the 36,113-pt low before gradually moving higher towards the day’s peak at 36,408 pts. It then retraced mildly to close at 36,282 pts. The white body candlestick with long upper shadow – following four consecutive sessions of uptrend movements – suggests the rally may have reached its peak for the immediate sessions. It was capped at the immediate resistance of 36,446 pts. Although we expect mild profit-taking to take place in the coming sessions – towards the 35,900-pt support – the medium-term bullish momentum remains intact, as the E-Mini Dow is still trading at the “higher high” bullish structure. This is also supported by positiveterritory RSI near the 60% level. As such, we retain our positive trading bias.
We suggest traders stick to the long positions initiated at 36,178 pts or the closing level of 27 Dec. For riskmanagement purposes, the initial stop-loss threshold is set at 35,383 pts. The immediate support is set at 35,900 pts – 26 Nov’s high – and followed by 35,383 pts, ie 27 Nov’s low.
The immediate resistance levels are pegged at 36,446 pts – 8 Nov’s high – and 37,000 pts.
Source: RHB Securities Research - 29 Dec 2021
Created by rhboskres | Aug 26, 2024