Maintain long positions. The E-Mini Dow marked another record high last Friday, surging 244 pts to settle at 34,686 pts. During this period, the index opened stronger at 34,449 pts. After it touched the day low of 34,366 pts, it rose on strong buying interest towards the 34,728-pt day high. It closed at 34,686 pts, forming a bullish candlestick. From the price action, we see the buying pressure has overpowered the selling pressure. With the bears shying away, the E-Mini Dow may move higher into uncharted territory, making fresh new highs in the coming sessions. Meanwhile, as the index is trading far apart from the 50-day SMA line, it may see mild profit-taking in the near future. While riding on the strong uptrend, we move the trailing stop higher and 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 level is raised to 34,280 pts.

The immediate support is revised to 34,350 pts and followed by 34,050 pts. On the upside, the immediate resistance is revised to 34,700 pts and followed by 34,850 pts.

Source: RHB Securities Research - 10 May 2021