Maintain long positions. The E-Mini Dow is seeing profit-taking activities continuing, as it rebounded 6 pts to settle at 33,883 pts. The index started Tuesday’s session at 33,889 pts. Selling pressure prevented it from moving higher, and the E-Mini Dow recorded a 33,973-pt session high. Meanwhile, mild buying pressure supported the index at the session low of 33,764 pts. Before the US Federal Open Market Committee makes its latest monetary policy decision on Wednesday, it is likely that both bulls and bears will adopt a wait-and-see approach, and the E-Mini Dow may move sideways and consolidate. A new direction will form if the index breaks past either the immediate resistance of 34,050 pts or 33,700-pt support. Before that happens, we stick to our positive trading bias.

We recommend traders maintain the long positions initiated at 31,509 pts, or the closing level of 1 Mar. For riskmanagement purposes, the trailing stop is set at 33,700 pts.

The immediate support remains at 33,700 pts, 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 - 28 Apr 2021