Maintain long positions. The E-Mini Dow saw the bullish momentum continue yesterday, rising 78 pts to settle at 33,032 pts. The index opened at 32,951 pts yesterday. After touching the session’s low of 32,746 pts, it soared to a high of 33,134 pts and last traded at 33,032 pts – closing higher for three consecutive days. The price action showed the bulls continuing to overshadow the bears. With the RSI indicator curving up and above the 65% level, bullish momentum may lift the E-Mini Dow to test the all-time high of 33,116 pts. If this level is cleared, it may travel to the unchartered 33,250-pt territory. As the index has bounced off from recent pullback for three consecutive days, the bears may take a breather. As long as the retracement is shallow, or sustains above 32,500 pts, the E-Mini Dow will maintain its uptrend posture of “higher highs with higher lows”. Based on this, we keep 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 level is set at 32,500 pts.

The immediate support remains at 32,750 pts, followed by 32,500 pts. On the upside, the immediate resistance is revised to the 18 Mar’s high of 33,116 pts and followed by 33,250 pts.

Source: RHB Securities Research - 30 Mar 2021