Maintain long positions as the index is consolidating. The E-mini Dow continued to trade in a relatively narrow sideways range below the 28,000-pt resistance mark. The latest session saw the index reach a low and high of 27,596 pts and 27,904 pts, before closing 58 pts lower at 27,717 pts. As the consolidation phase is still narrow in nature, with no price reversal or top-building signals seen, we are keeping our positive trading bias.

We advise traders to stay in long positions, which we initiated at 25,235 pts, i.e the closing level of 12 Aug. For riskmanagement purposes, a stop-loss can be now placed below the 24,650-pt mark.

Immediate support is maintained at the 25,000-pt round figure, followed by 24,650 pts – near 12 Aug’s low. Conversely, the immediate resistance is set at 25,500 pts and followed by 25,650 pts, which is a level near the 200-day SMA line.