Maintain long positions. The E-Mini Dow continued its mild positive momentum yesterday, rising 62 pts to settle at 33,390 pts. On Thursday, it started the session at 33,344 pts. After gyrating between the session’s high and low of 33,464 pts and 33,227 pts, it closed at 33,390-pt level. From the recent price action, strong buying interest has been witnessed near the support level of 33,200 pts. The index is consolidating near the support level before it retests the recent 33,504-pt high, which was recorded on 5 Apr. If momentum picks up and breaches the recent high, the next hurdle will be at 33,600 pts. As the RSI is still moving along the uptrend line, showing that the bullish momentum is 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 riskmanagement purposes, the trailing stop is set at 32,900 pts.

The immediate support is unchanged at 33,200 pts, followed by the 33,000-pt psychological level. On the upside, the immediate resistance is revised to 5 Apr’s high of 33,504 pts and followed by the 33,600-pt round figure.

Source: RHB Securities Research - 9 Apr 2021