Maintain long positions. After the E-Mini Dow’s recent new high, the bulls took a breather, resulting in the index seeing a pullback of 100 pts to settle at 33,315 pts. It started Tuesday’s session at 33,417 pts. After touching the session’s high of 33,454 pts, it dipped to a low of 33,266 pts and was last traded at 33,315 pts. Although the index saw a mild pullback, the overall price action still exhibits a series of “higher highs” with “higher lows” – indicating that the uptrend remains intact. Coupled with the RSI indicator trending higher, bullish momentum may resume after the mild correction. As the trailing-stop remains intact, we maintain our positive trading bias.

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

The immediate support is marked at 33,200 pts, followed by the 33,000-pt psychological level. On the upside, the immediate resistance is pegged at the 33,600-pt round figure, followed by 33,800 pts.

Source: RHB Securities Research - 7 Apr 2021