Maintain long positions. The E-Mini Dow ended the latest session marginally higher by 10 pts, to close at 31,278 pts – a new record closing. This was after it traded in a relatively narrow range of 31,144-31,340 pts. The latest price actions indicate a high possibility of the index developing a minor consolidation phase in the coming sessions, to digest its recent sessions’ sharp gains from 1 Feb’s low of 29,552 pts. However, provided the consolidation phase takes the shape of a narrow sideways trading pattern, we will maintain 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 now be set below 30,400 pts.

Support levels are pegged at 31,000 pts and 30,850 pts. On the upside, the immediate resistance is expected at 31,500 pts, followed by 31,750 pts

Source: RHB Securities Research - 10 Feb 2021