Maintain long positions. The E-mini Dow ended the latest session 187 pts lower at 26,297 pts. The index has generally been weakening over the recent sessions, after the recent failed attempt to cross above the 26,779-pt mark. At this juncture, we believe that the risk of a deeper retracement would still be contained, provided the 200- day SMA line is not breached in the coming sessions. We maintain our positive trading bias.

Until a trend reversal is confirmed, we advise traders to stay in long positions. For risk-management purposes, a stop-loss is recommended below the 26,150-pt mark.

We are keeping the immediate support at 26,150 pts, which is near the 200-day SMA line. This is followed by 25,874 pts – the low of 14 Jul. Moving up, the resistance level is maintained at 26,779 pts, or the high of 16 Jun. This is followed by the 27,000-pt round figure.

Source: RHB Securities Research - 29 Jul 2020