Maintain long positions. The E-Mini Dow saw profit-taking activity resume last Friday, as it corrected 184 pts to settle at 33,767 pts. The index started the session at 33,915 pts. It attempted to stage a rebound after testing the session’s high of 33,941 pts. However, selling pressure emerged during the US trading hours, causing it to fall towards the low of 33,678 pts, before closing at 33,767 pts. Mild buying pressure was seen again near the crucial support level of 33,700 pts, showing that the bulls are not giving up yet. As long as the immediate support remains intact, the index may consolidate sideways before it reattempts to test the 34,000-pt psychological level. Premised on this, 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 risk management purposes, the trailing-stop is placed at 33,700 pts.

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

Source: RHB Securities Research - 3 May 2021