Uptrend is extending; maintain long positions. The E-Mini Dow marked a new record closing in the latest session, advancing 268 pts to close at 31,096 pts – it crossed above the 31,000-pt resistance which the index had been trying to breach over the past 1.5 weeks. The positive performance meets our expectations for the index to resume its upward move, following the completion of its consolidation phase, which saw the index test the 30,500- pt support last week. The RSI now is also near to break away from its downtrend line. If this happens, it would signal an improvement in momentum. With prices continuing to scale above the 30,000-pt psychological level, we keep to 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 set at the breakeven mark.

Support levels are revised to 30,750 pts and 30,500 pts. Moving up, the immediate resistance is now pegged at 31,500 pts, followed by 31,750 pts.

Source: RHB Securities Research - 21 Jan 2021