Maintain long positions. The E-Mini Dow’s recent rally took a pause after it dipped 27 pts to settle at 32,898 pts. On Thursday, the index started the session at 32,938 pts. It moved narrowly between 33,045 pts and 32,866 pts before last trading at 32,898 pts. The RSI indicator is pointing downwards, indicating that the E-Mini Dow may see some profit-taking activities ahead. We think the index may pull back towards 32,750 pts and 32,500 pts before the bullish momentum picks up again. Post consolidation, it may re-test the 33,000-pt threshold. As such, we stick to our positive trading bias.

We recommend traders keep 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 32,500 pts.

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

Source: RHB Securities Research - 1 Apr 2021