Maintain long positions. The E-Mini Dow saw its bullish momentum extend yesterday, surging 299 pts to settle at 33,923 pts – a new record high. On Thursday, it started the session at 33,661 pts. After briefly touching a low of 33,652 pts, it moved north towards the high of 33,962 pts, and was last traded at 33,923 pts. As showed by the RSI trendline, which is slanting upwards, bullish momentum is growing and the index is likely to attempt crossing the 34,000-pt psychological level to test the 34,050-pt and 34,150-pt resistance levels. As it is trading at a fresh high, it may see some mild profit-taking by the bears. As long as it stays above the 33,250-pt mark, the uptrend structure remains intact. 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 raised to 33,250 pts.

The immediate support is revised to 15 Apr’s low of 33,652 pts, followed by the 33,500-pt round figure. On the upside, the immediate resistance is projected at the 34,050-pt round figure, followed by 34,150 pts.

Source: RHB Securities Research - 16 Apr 2021