Maintain long positions. The E-mini Dow managed to stage a positive intraday price reversal, rebounding from a low of 28,257 pts to close at 28,622 pts – marking a 206-pt advancement. The index has been able to extend its upward move following its recent upside breach of the 28,000-pt level – indicating firm control by the bulls. Additionally, the E-mini Dow is also trading well above both the 50- and 200-day SMA lines – the two lines have crossed, producing a “Golden Cross”. Hence, we are keeping 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 28,000-pt level.

The immediate support is revised to 28,257 pts, which was the latest low. This is followed by the 28,000-pt round figure. Moving up, the immediate resistance is now pegged at 28,850 pts, or the low of 10 Feb, and followed by the 29,000-pt round figure.

Source: RHB Securities Research - 2 Sept 2020