Maintain long positions. The E-Mini Dow tracked its regional peers’ weakness, shedding 274 pts to settle at 34,294 pts. The index opened at 34,583 pts yesterday and slid to the 34,004-pt session low. Buying pressure emerged near the 34,000-pt psychological level, which saw the E-Mini Dow rebound higher to close at 34,294 pts. The price action reaffirmed the strong support that formed at the 34,000-pt level and the index managed to retain the 50-day SMA line. As such, the uptrend structure remains intact and should resume the upward movement soon. Premised on this, we stick to our positive trading bias.

Traders are recommended to keep 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 revised to 34,241 pts, or the low of 6 Jul, and followed by the 34,000-pt psychological level. On the other hand, the immediate resistance is pegged at 34,595 pts – the high of 7 Jul – and followed by 34,825 pts, ie the high of 7 Jun.

Source: RHB Securities Research - 9 Jul 2021