Maintain long positions. The E-Mini Dow is taking a pause, declining 51 pts to settle at 33,631 pts. On the first trading day of the week, the index started at 33,660 pts. After touching the session’s high of 33,686 pts, it slid towards the 33,550-pt low. During the US trading hours, buying interest emerged once again to lift the index to close at 33,631 pts. Based on the price actions, the bulls’ strength is slightly greater than the bears’ selling pressure. Hence, the index has yet to see signs of a negative reversal. Bullish momentum may continue after the minor pause. As such, we maintain our positive trading bias.

We recommend traders maintain 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 33,200 pts.

The immediate support remains at 33,400 pts, followed by 33,200 pts. On the upside, the immediate resistance is pegged at 33,800-pt round figure, followed by 33,950 pts.

Source: RHB Securities Research - 13 Apr 2021