Maintain long positions. The E-Mini Dow showed its first sign of developing a minor pause during Friday’s session – this follows from the prior few sessions’ gains. Earlier during this session, the index tested the 31,000-pt resistance level with a high of 31,148 pts. From there, it slipped to a low of 30,687 pts before rebounding to cease 51 pts higher at 30,993 pts. At this juncture, the latest session’s price action merely suggests a minor pause is taking place and that the E-Mini Dow’s overall near-term positive price trend remains positive – more so as it is still trading rather comfortably well above the 30,000-pt psychological mark. Do note that the RSI has also crossed above the resistance line and remains below the overbought threshold. We maintain our positive trading bias.

We recommend traders stay in long positions for now. We initiated these at 30,033 pts, or the closing level of 11 Dec 2020. For risk-management purposes, a stop loss can now be placed below 30,000 pts.

We are keeping the support levels at 30,500 pts and the 30,000-pt psychological level. Conversely, the immediate resistance is set at 31,000 pts and followed by 31,500 pts.

Source: RHB Securities Research - 11 Jan 2021