Maintain long positions. The E-mini Dow continued to hold above the 28,000-pt support level during the latest session after shedding 46 pts to close at 28,193 pts. The negative session can be seen as just a minor pause following the index’s sharp upward move over the previous three sessions – this was off the 27,392-pt support level. While the RSI is marginally above the overbought threshold, in the absence of a price reversal signal, 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 below the 27,392-pt level.

The immediate support is revised to the 28,000-pt round figure, and followed by 27,392 pts, or the low of 20 Aug. Conversely, the immediate resistance is pegged at 28,234 pts, which was the high of 25 Feb. This is followed by 28,850 pts, ie the low of 10 Feb.

Source: RHB Securities Research - 26 Aug 2020