Maintain long positions. Despite negative momentum emerging on Thursday, the E-Mini Dow jumped higher on Friday, rising 232 pts to settle at 33,941 pts – this negated the selling pressure. Initially, it started the Friday session at 33,715 pts. After moving sideways for most of the session, the E-Mini Dow found the session low at 33,608 pts. During the US trading hours, strong buying interest lifted the index towards the 34,056-pt session high. It last traded at 33,941 pts. The latest price action reaffirms the strong support marked at the 33,700-pt level. This level has been tested at least three times over the week. Sentiment will be dented if said level gives way during the coming sessions. Meanwhile, as the bulls are back in the driving seat, the E-Mini Dow may look to re-test the 34,050-pt hurdle, followed by the all-time high record of 34,144 pts. As such, 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 risk management purposes, the trailing stop is set at 33,700 pts.

The immediate support is marked at 33,700 pts and followed by the 33,500-pt round figure. On the upside, the immediate resistance is sighted at the 34,050-pt round figure, followed by 16 Apr’s high of 34,144 pts.

Source: RHB Securities Research - 26 Apr 2021