Maintain long positions. The E-Mini Dow saw the bullish momentum briefly emerging yesterday. The index started Wednesday’s session at 33,575 pts. It then tracked its Asian peers to move higher, touching the intraday high of 33,800 pts. However, the bullish momentum faltered during the European trading hours and retraced to close at 33,624 pts – recording a 54-pt gain from Tuesday’s session. Despite profit-taking activities during the late session, the E-Mini Dow still maintained a “higher high and higher low” bullish posture, as the bulls are still gripping the index as it moves higher. Meanwhile, it may consolidate near the 33,400-pt support level before retesting the immediate resistance at 33,800 pts. Since the uptrend remains intact, we stick to 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 riskmanagement purposes, the trailing stop is set at 33,200 pts.

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

Source: RHB Securities Research - 15 Apr 2021