Maintain long positions. The E-mini Dow came close to testing the immediate support level of 28,470 pts with a low of 28,485 pts, before closing 213 pts lower, at 28,585 pts. We see the mildly weak session as just a minor pause following the index’s advancements during previous sessions, as it did not flash out price exhaustion or reversal signals. On a broader view, expectations for the index to extend its upward move, following last week’s firm breakout from the 50-day SMA and multi-week downtrend lines, remain valid. Hence, we are keeping our positive trading bias. We recommend traders stay in long positions.

We initiated these at 28,179 pts, or the closing level of 7 Oct. For risk-management purposes, a stop-loss can be placed at the breakeven mark.

We are keeping our support levels at 28,470 and 28,150 pts. Towards the upside, the immediate resistance is set at the 29,000-pt round figure, followed by 29,180 pts, which was the high of 3 Sep

Source: RHB Securities Research - 14 Oct 2020