Maintain short positions while moving down the trailing-stop. The E-mini Dow formed a third consecutive white candle to settle the latest session 439 pts higher at 27,482 pts. In the process, the index tested a wall of resistance that consists of the 50-day SMA and multi-week downtrend lines. Towards the upside, should the E-mini Dow manage to overcome said resistance area, this could potentially mark an end to its multi-week correction phase. Until we see this happening, we are keeping to our negative trading bias.

We recommend traders stay in short positions and initiated these at 27,525 pts, or the closing level of 8 Sep. For risk-management purposes, a stop-loss can now be placed above the 28,000-pt mark.

The immediate support is revised to 27,200 pts – a price point of the latest session. This is followed by the 27,000- pt round figure. Towards the upside, the immediate resistance is set at the 28,000-pt round figure and followed by 28,367 pts, which was the high of 16 Sep

Source: RHB Securities Research - 29 Sept 2020