Maintain long positions. The E-Mini Dow completed its pullback, which saw it rising 243 pts to close at 35,403 pts last Friday. It started stronger at 35,182 pts but pulled back immediately to test the 35,114-pt day low. Buying interest then emerged to gradually uplift the index higher towards the end of the session, which saw its peak at 35,428 pts before the close. The latest long white candlestick that pierced through the previous black body candlestick suggests the upward momentum has been strengthened – the E-Mini Dow is now set to propel towards the 35,547-pt immediate resistance with the potential to form a fresh “higher high” pattern. This bullish technical set-up is also in tandem with the RSI momentum, which is rising towards the 60% level in an uptrend direction. Premised on this renewed momentum, we stick to our positive trading bias.

We advise traders to stick to the long positions initiated at the closing level of 24 Aug, or 35,314 pts. For risk management, the initial stop-loss threshold is marked below 35,114 pts – its immediate support.

The immediate support is revised higher to 35,114 pts – 27 Aug’s low – followed by 34,569 pts, or 20 Aug’s low. The nearest resistance is eyed at 35,547 pts, or 16 Aug’s high, and followed by the 36,000-pt uncharted territory.

Source: RHB Securities Research - 30 Aug 2021