Maintain long positions. The E-Mini Dow extended above the 33,000-pt psychological level, rising 378 pts to settle at 33,415 pts. Yesterday, the index gapped up 199 pts to open at 33,216 pts. After testing a low of 33,157 pts, it jumped to a 33,504-pt high and was last traded at 33,415 pts. The RSI indicator is slanting upwards, indicating strong bullish momentum. After taking out the previous resistance level of 33,116 pts, the index is poised to record a new high in 2021, with the bulls eyeing the 33,600-pt and 33,800-pt levels. Until then, it may see mild profit-taking and retest the 33,000-pt resistance-turned-support level. As the index is moving higher on strong momentum, we keep our positive trading bias.

We recommend traders stick to the long positions initiated at 31,509 pts, or the closing level of 1 Mar. For risk management purposes, the trailing-stop is raised to 32,900 pts.

The immediate support is revised to 33,200 pts, and is followed by the psychological level of 33,000 pts. On the upside, the immediate resistance is revised to the 33,600-pt round figure, followed by 33,800 pts.

Source: RHB Securities Research - 6 Apr 2021