Maintain long positions. The E-mini Dow extended its minor consolidation into the latest session, closing 31 pts lower at 27,792 pts. It reached a high of 27,911 pts. This consolidation phase is taking place around the 28,000-pt level and follows the index’s recent strong advancement off the 50- and 200-day SMA lines. Additionally, these lines have produced a “Golden Cross”, ie the 50-day SMA line crossing above the 200-day one. In the absence of a deeper correction phase signal setting in, we are keeping to our positive trading bias

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

We revise the immediate support to 27,500 pts. This was followed by the 27,000-pt round figure. Moving up, the immediate resistance is eyed at 28,000 pts, and followed by the 28,250-pt threshold

Source: RHB Securities Research - 17 Aug 2020