Maintain long positions. After the Quadruple Witching day, the E-Mini-Dow experienced a mild bullish momentum yesterday, gaining 116 pts to settle at 32,619 pts. The index initially started the Monday session at 32,467 pts. It fell to the session low of 32,314 pts before climbing higher toward the 32,688-pt session high and closed at 32,619 pts. If it, in the coming sessions, causes a “high low” pattern to form near the 32,500-pt level, there is a high possibility that the E-Mini Dow will see a bullish momentum follow-through and test its recent 18 Mar high of 33,116 pts. With the RSI indicator flattening, the index may consolidate sideways before forming a “higher low” pattern. As long as the trailing stop remains intact, we are keeping to our positive trading bias.

We recommend traders maintain long positions. We initiated these at 31,509 pts, or the closing level of 1 Mar. For risk-management purposes, the trailing stop is revised higher to 32,250 pts.

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

Source: RHB Securities Research - 23 Mar 2021