Maintain long positions. Having rebounded from an intraday low of 31,302 pts, the E-Mini Dow ended the latest session directionless, closing two points higher at 31,433 pts. Overall, our expectation for the index to break out from its narrow consolidation phase, which developed around 31,150-31,5000 pts last week, did not materialise. Nevertheless, this did not nullify our ongoing positive trading bias, as the said consolidation is still narrow in nature, and is not showing signs of a clear top-building process. Additionally, the index is trading relatively well-above both the 30,000-pt psychological level, and the 50-day SMA line. We maintain our positive trading bias.

We recommend traders stay in long positions, which were initiated at 30,950 pts, or 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. Conversely, the immediate resistance is set at 31,500 pts, followed by 31,750 pts.

Source: RHB Securities Research - 22 Feb 2021