Maintain long positions. The E-Mini Dow was unable to sustain its intraday gains, as it slid from an intraday high of 31,188 pts to settle mildly lower by 14 pts, at 31,082 pts – still above the 31,000-pt previous resistance level. The performance merely indicates that the index is experiencing a minor pause, following its previous three session’s rebound off the 30,500-pt support level – the overall positive price trend still stands firm. In the near-term, as long as the 30,500-pt support level is not breached, the risk of a deeper correction phase setting in would be contained. 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 set at the breakeven mark.

Support levels are maintained at 30,750 pts and 30,500 pts. Towards the upside, the immediate resistance is set at 31,500 pts, followed by 31,750 pts.

Source: RHB Securities Research - 22 Jan 2021