Maintain long positions while moving the trailing stop to the breakeven level. The E-Mini Dow reversed from its earlier session’s weak trading tone, which saw prices testing the lower bound of the previous minor price congestion area of 31,700-32,100 pts with a low of 31,727 pts. Entering the end of the Asian trading hours, the index’s trend reversed and generally moved higher for the remainder of the session – it closed 468 pts higher at the record 32,279-pt level. Momentum will be further enhanced should the RSI, which is still below the overbought threshold, be able to cross above the resistance line, as drawn in the chart. Towards the downside, provided the 31,700-pt support is not breached, the overall upward move should stay intact. We retain 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 at the breakeven mark.

Support levels are maintained at 31,700 pts and 31,300 pts. Towards the upside, the immediate resistance is now pegged at 32,300 pts and followed by 33,500 pts.

Source: RHB Securities Research - 11 Mar 2021