Maintain long positions. The E-Mini Dow saw minor profit-taking near the all-time high level, falling 61 pts to settle at 33,570 pts. On Tuesday, the index started the session at 33,647 pts. During the early session, it tracked the weakness of its Asian peers and fell to the day low of 33,431pts. The E-Mini Dow rebounded slightly during the European trading hours to recoup earlier losses, but only managed to close at 33,570 pts. Although the RSI is still trending higher, it is rounding the top, indicating that the index is still experiencing mild profit-taking while the bulls consolidate near the 33,400-pt support level. Since selling pressure is mild and not aggresive, we think the uptrend stays intact. Bullish momentum may continue after the profit taking. Hence, we keep to 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 placed at 33,200 pts.

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

Source: RHB Securities Research - 14 Apr 2021