Maintain long positions. The E-Mini Dow was capped by profit taking near the 34,000-pt level, retracing 64 pts to settle at 33,877 pts. The index started the Monday session at 33,954 pts and, after oscillating between 34,045 pts and 33,832 pts, it last traded at 33,889 pts. With the latest price action, the RSI indicator has fallen below the trendline, indicating that the E-Mini Dow may pull back lower for consolidations before it retests the 34,000-pt psychological level again. As long as the 33,700-pt support level remains intact, the overall trend still displays a “higher highs and higher lows” uptrend pattern. We expect the bullish momentum to return after the mild consolidations. As such, we are keeping 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 risk management purposes, the trailing stop is placed at 33,700 pts.

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

Source: RHB Securities Research - 27 Apr 2021