Maintain long positions. Despite last Friday being the Quadruple Witching day, the E-Mini-Dow’s Jun 2021 futures contract saw a mild pullback from its historical high – declining 262 pts to settle at 32,503 pts. It started the session at 32,778 pts, and barely touched the high of 32,867 pts before slipping to the session’s low of 32,401 pts. It was last traded at 32,503 pts. Strong buying interest was seen near the 32,500-pt level. However, if this threshold gives way, the index may correct towards the 32,000-pt psychological level. As both the 50- and 200-day SMA lines are trending higher, the overall trend remains bullish. While the RSI is retracing from the resistance level, the uptrend’s bullish momentum will stay intact as long as it remains above 50%. We are keeping our positive trading bias until the stop-loss level is breached.

We recommend traders stick to long positions. We initiated these at 31,509 pts, or the closing level of 1 Mar. For risk management purposes, a trailing-stop can be placed below 32,000 pts.

Immediate support is maintained at 32,500 pts, followed by 32,000 pts. On the upside, the immediate resistance is pegged at the round figure of 33,000 pts, followed by 33,300 pts.

Source: RHB Securities Research - 22 Mar 2021