The E-Mini Dow’s price momentum remained muted last Friday as it closed neutral at 37,719 points, said RHB Investment Bank (RHB IB).
This was amidst the recent range-bound trading between the 38,113-point resistance and 37,390-point support.
The index’s movement started the session positively at 37,751 points, and then oscillated between 37,882 pts and 37,504 points – ultimately settling near the opening.
The neutral movement indicates that the E-Mini Dow’s movement continues to trade in a range-bound fashion between the 38,113-point resistance and 37,390-point support following the recent peak.
RHB IB expected this movement to persist in its sideways consolidation, as the RSI remains flat at 66%, in the positive territory.
It did not discount the possibility of further corrections below the 37,390-point support, considering the current index value of 37,719 pts is trading well above the 50-day SMA line (for example at 35,761 pts).
The research house said unless the immediate support is broken, it maintains its positive trading bias.
Traders are advised to keep to the long positions initiated at 33,914 pts or the close of 2 Nov 2023.
To manage the trading risks, the trailing-stop threshold is set at 37,390 pts.
The immediate support is set at the aforementioned 37,390 pts and followed by 37,000 pts.
The immediate resistance is pegged at 38,113 pts and followed by the 39,000-pt level.
