Maintain long positions. The E-Mini Dow’s latest two sessions’ lower timeframe price actions suggest a minor consolidation is likely taking place following the index’s recent surge off the 50-day SMA line. The latest session saw the E-Mini Dow hit another record intraday high of 32,118 pts – this was before it surrendered most of the gains to settle 35 pts higher at 31,811 pts. Despite the latest two failed attempts to close above the 32,000-pt mark, we are not seeing this as possible signs of a price rejection. So far, said minor sideways trading took place in a relatively narrow range of 31,700-32,100 pts. It is likely to be completed during the coming sessions, paving the way for the index to extend its uptrend. We maintain our positive trading bias.

We recommend traders stay in long positions. 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 31,000 pts.

Support levels are revised to 31,700 pts and 31,300 pts. Meanwhile, the immediate resistance is set at 32,000 pts and followed by 32,300 pts.

Source: RHB Securities Research - 10 Mar 2021