Maintain long positions. After failing to establish a higher low pattern, the E-Mini-Dow experienced a mild bullish session yesterday, declining 313 pts to settle at 32,306 pts. The index initially started the session at 32,644 pts. Tracking regional peers’ bearish sentiment, it fell to the session low of 32,235 pts before settling at 32,306 pts. Taking cue from the RSI indicator, the E-Mini Dow may see correction in the coming sessions amid weakening momentum. We will monitor to see if the index is able to find an interim low or form a long lower shadow in the upcoming sessions. As long as the trailing stop stays intact, we maintain our positive trading bias.

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, the trailing stop is set at 32,250 pts.

The immediate support is revised to 8 Mar’s high of 32,114 pts and followed by 24 Feb’s 31,964-pt high. On the upside, the immediate resistance is pegged at the round figure of 32,500 pts and followed by 32,700 pts.

Source: RHB Securities Research - 24 Mar 2021