Maintain long positions. After struggling during the early part of the US trading hours, which saw prices dipping to a low of 30,641 pts, the E-Mini Dow ended the latest trade 587 pts stronger at 31,465 pts – back to the upper bound of the 31,100-31,500 pts trading range. The positive follow-through following the re-testing of the 50-day SMA line during the previous session lends support to our bias that the index was merely trading in a relatively shallow A-B-C corrective pattern over the past one week. We think this has likely completed, which implies chances are high that the E-Mini Dow is on the path of extending its upward trajectory. We maintain our positive trading bias.

We recommend traders stay in long positons. We initiated these at 31,509 pts, or the closing level of 1 Mar. For risk-management purposes, a stop loss can be placed below 30,800 pts.

Support levels are revised to 31,000 pts and followed by 30,700 pts. On the upside, the resistance levels are pegged at 31,600 pts and 32,000 pts.

Source: RHB Securities Research - 8 Mar 2021