Maintain long positions. The E-Mini Dow managed to stage a rebound yesterday, adding 108 pts to settle at 34,568 pts. Following a previous bearish session, the index initially had a shaky start at 34,394 pts. During the US session, market confidence was tested – this saw the E-Mini Dow fall towards the intraday low at 34,321 pts, ie below its opening price. It then rapidly turned higher to test the day high at 34,595 pts. After a choppy session, it closed at 34,568 pts and formed a white body candlestick. Although selling pressure emerged, it was fully met with the positive momentum. As long as the E-Mini Dow stays above the immediate support level or the 50-day SMA line, the upward trajectory is retained. Premised on the bullish momentum, we keep to our positive trading bias.

We think traders should hold the long positions initiated at 34,082 pts, or the closing level of 24 Jun. To manage risks, the trailing-stop mark is set at 34,150 pts – a level just beneath the 50-day SMA line.

The immediate support is unchanged at 34,377 pts, or the low of 1 Jul. This is followed by 34,000 pts. On the upside, the immediate resistance is eyed at 34,825 pts and followed by 35,000 pts, which was the all-time high

Source: RHB Securities Research - 8 Jul 2021