Maintain long positions. The E-Mini Dow’s advancements did not slow down as we had anticipated, charting its sixth consecutive positive closing – an indication of the bulls’ firm control over the uptrend that resumed from 1 Feb’s low of 29,552 pts. During intraday trade, the index generally trended higher, in a relatively narrow trading range of 31,050-31,296 pts, before closing 226 pts higher at 31,268 pts. The closing level marks a new record high for the index. In the absence of price exhaustion/reversal signals, coupled with the still-healthy RSI reading – which is trending up, but yet to reach the overbought threshold – we are keeping our positive trading bias.

We recommend traders stay in long positions. These were initiated at 30,950 pts, which was the closing level of 4 Feb. For risk management, a stop-loss can be set below 30,000 pts.

Support levels are revised to 31,000 pts and 30,850 pts. Conversely, the immediate resistance is revised to 31,500 pts, followed by 31,750 pts.

Source: RHB Securities Research - 9 Feb 2021