Maintain long positions. While the E-Mini Dow ended the session 61 pts higher at 31,458 pts, it failed to sustain its intraday breakout from the 31,500-pt resistance level. It had reached a high of 31,602 pts during intraday trade. Recall that we have been anticipating that the index would complete its minor sideways consolidation this week, by closing above the said resistance point. While it was unable to sustain the intraday breakout, we do not see firm signs of a price rejection/reversal. The index is also sustaining its breakout from the previous record-high posted in January, implying that the underlying positive trend is still firmly in place. With the 50-day SMA line continuing to trend higher, and the still-healthy RSI readings, we keep 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.

We are keeping the support levels at 31,000 pts and 30,850 pts. Meanwhile, the immediate resistance is set at 31,500 pts, followed by 31,750 pts.

Source: RHB Securities Research - 17 Feb 2021