Maintain long positions. The E-Mini Dow was not able to sustain its earlier session’s positive trading tone. After hitting a high of 31,632 pts, the index trended lower and reached a low of 31,228 pts during the US trading hours – this was before rebounding to narrow its losses to 118 pts to settle at 31,431 pts. The latest performance can be seen as part of the E-Mini Dow’s 1.5-week minor sideways consolidation phase, which set in following its previous sharp upward move. This means our expectation of the index resuming its upward charge this week has not materialised yet. Even so, given the still relatively narrow nature of the correction phase that is taking place around 31,150-31,500 pts, we are keeping to 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 purposes, a stop loss can now be set below 30,400 pts.

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

Source: RHB Securities Research - 19 Feb 2021