Maintain long positions. The E-Mini Dow climbed higher yesterday to recoup the previous session’s losses, climbing 140 pts to close at 34,974 pts. The index started at 34,867 pts and whipsawed to hit the day low of 34,774 pts during the early Asian trading hours. It then saw strong positive momentum emerging at the low level to propel the E-Mini Dow higher throughout the session. It hit the intra-day’s high at 35,061 pts during the US trading hours before retracing mildly to close at 34,974 pts. The latest price action shows that the bullish momentum remains intact, forming a “higher low” structure above the immediate support. Coupled with the RSI bouncing higher near the 60% level, the positive momentum has re-emerged – indicating a stronger momentum in the coming sessions. As long as the index remains above the stop-loss point, we stick to our positive trading bias.

Traders are suggested to maintain the long positions initiated at 34,709 pts, ie the closing level of 22 Jul. To mitigate the trading risks, the stop-loss level is marked at 34,557 pts, which was 22 Jul’s low.

The support levels are unchanged at 34,652 pts – 26 Jul’s low – and 34,361 pts, ie 21 Jul’s low. Meanwhile, the immediate resistance level is pegged at 35,200 pts and followed by 35,350 pts – both in uncharted territory.

Source: RHB Securities Research - 30 Jul 2021