Maintain long positions. The E-Mini Dow sustained its previous session’s breakout momentum from the minor congestion area of 31,700 – 32,100 pts. After trading in positive territory for most of the session, it ended 200 pts higher to close at a record level of 32,479 pts. The high was posted at 32,641 pts. On the back of the past week’s 2,129-pt sharp advancement (measured between its low and high), we do not see price exhaustion signals from the 32,500-pt resistance level yet. The RSI, which is still below the overbought level, is also close to breaking above the resistance line – which would be supportive of the positive price trend. 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 at the breakeven mark.

Support levels are revised to 32,100 pts, followed by 31,700 pts. On the upside, the immediate resistance is pegged at 32,500 pts, followed by 32,800 pts.

Source: RHB Securities Research - 12 Mar 2021