Maintain long positions. The E-mini Dow experienced a negative intraday price reversal. After hitting a high of 28,069 pts, the index slid to settle 65 pts weaker at 27,614 pts. The index has been attempting to decisively cross above the 27,614 pts resistance over the past two sessions – indicating some struggles by the bulls. However, at this juncture, there is no price rejection from the said level yet. Hence, we are keeping our positive trading bias.

We advise traders to stay in long positions. We initiated these at 26,491 pts – the closing level of 14 Jul. For riskmanagement purposes, a stop-loss can now be placed at the breakeven level.

We revise the immediate support to 27,300 pts, the price point of 10 Aug. The second support is eyed at the 27,000- pt round figure. Towards the upside, the immediate resistance is maintained at 27,624 pts, the high of 9 Jun. This is followed by the 28,000-pt round figure

Source: RHB Securities Research - 12 Aug 2020