Maintain long positions. The E-Mini Dow saw a muted session yesterday, marginally adding 6 pts to settle at 34,170 pts – it continues to languish near the 50-day SMA line. The index started Tuesday’s session at 34,188 pts. After fluctuating between the 34,363-pt day high and 34,112-pt day low, it closed at 34,170 pts. Since it continues to stay above the 50-day SMA line, the technical signals still suggest that the E-Mini Dow is moving within an uptrend trajectory, with the downside supports at 34,000 pts and 33,752 pts. As long as these support levels stay intact, we make no change to our positive trading bias.

We recommend traders keep the long positions initiated at 34,082 pts, or the closing level of 24 Jun. For risk management, the stop-loss mark is fixed at 33,752 pts.

The immediate support is marked at the 34,000-pt psychological level, followed by the low of 23 Jun, ie 33,752 pts. On the upside, the immediate resistance is sighted at 34,411 pts – the high of 28 Jun – and followed by 7 Jun’s high, ie 34,825 pts.

Source: RHB Securities Research - 30 Jun 2021