Keep long positions. The E-Mini Dow remained in sideways direction with mild profit-taking last Friday, as it closed 71 pts lower at 35,353 pts. It started with a neutral tone at 35,425 pts and then whipsawed throughout the session, hitting the 35,504-pt intraday high before falling to the 35,248-pt intraday low. Although it formed a black body candlestick on Friday, the “higher low” bullish structure remains intact within the tight sideways movement – staying relevant for the medium-term upward movement. The RSI strength of 55% still remain positive, albeit lower than in previous sessions. Unless the E-Mini Dow falls below the stop-loss level, we stick to our positive trading bias.

We recommend traders stick to the long positions initiated at 35,314 pts, or the closing level of 24 Aug. For riskmanagement purposes, the initial stop-loss level is marked below 35,114 pts, ie the immediate support.

The immediate support is fixed at 35,114 pts, ie 27 Aug’s low, and followed by 34,569 pts – 20 Aug’s low. The nearest resistance is set at 35,547 pts – 16 Aug’s high – and followed by the new resistance level of 36,000 pts.

Source: RHB Securities Research - 6 Sept 2021