Maintain long positions. The E-Mini Dow saw profit-taking activities ending with a strong rebound yesterday after rising 241 pts to settle at 34,008 pts. The index started the Monday session at 33,828 pts. After briefly touching the 33,823-pt day low, it moved higher throughout the session and reached the intraday high of 34,116 pts. However, selling pressure emerged above the 34,050-pt resistance, which saw the E-Mini Dow paring gains to close at 34,008 pts. With the RSI staying above the 50% threshold level, it may consolidate and retest the 34,050-pt immediate resistance again in the coming sessions. Furthermore, sentiment should remain bullish, as the 33,700-pt level has been tested several times during the past week and strong support established. Since the index may re-test the upside resistance in the near future, 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 riskmanagement purposes, the trailing-stop mark 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 seen at the 34,050-pt round figure and followed by 16 Apr’s high of 34,144 pts.

Source: RHB Securities Research - 4 May 2021