Keep long positions. The US celebrated its Labour Day holiday on Monday. Hence, the trading session has been shortened. Consequently, the E-Mini Dow’s moves were relatively unchanged with a positive posture. At the time of writing, it inched up 49 pts and last traded at 35,402 pts. The index opened at 35,352 pts and swung between 35,263 pts and 35,476 pts. The session will continue trading until the next settlement. The latest mild positive movement within the tight sideways direction indicates the “higher low” bullish structure remains relevant for the medium-term bullish bias. Likewise, the strethening RSI of 56% suggests the positive momentum stays intact. As such, we maintain our bullish trading bias until the momentum reverses.

We suggest traders maintain the long positions initiated at 35,314 pts, or the closing level of 24 Aug. For risk-management purposes, the initial stop-loss threshold is pegged below 35,114 pts, ie the immediate support.

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

Source: RHB Securities Research - 7 Sept 2021