Maintain long positions. After a volatile session, the E-Mini-Dow gained 13 pts to settle at 32,319 pts. The index started the session at 32,348 pts. It bucked regional peers and surged to an intraday high of 32,669 pts. However, the bulls failed to hold on to the gains, which saw the E-Mini Dow retracing lower – it closed at 32,219 pts. Although the index ended with an Inverted Hammer pattern, it is likely that the bulls have not given up yet. It may consolidate sideways before momentum picks up again. Meanwhile, breaching the 32,000 pts psychological level may open door for a deeper correction towards the 50-day SMA line. Hence, we retain our positive trading bias until the trailing stop is breached.

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 set at 32,250 pts.

The immediate support is maintained at 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 seen at the round figure of 32,500 pts and followed by 32,700 pts.

Source: RHB Securities Research - 25 Mar 2021