Maintain long positions. After a volatile Tuesday session, the E-Mini Dow managed to close in positive territory, recording a third-straight positive session since 27 May. It started the session stronger yesterday at 34,570 pts – oscillating between the 34,408-pt day low and day high of 34,827 pts before settling in at 34,550 pts. Although the closing price was lower than the opening one – forming a bearish-bodied candlestick in the process – the RSI, which is pointing upwards, still favours an upward movement in the coming sessions. As long as the index is able to sustain above the 34,170-pt support level, the “higher low” bullish pattern will remain intact. As such, we retain our positive trading bias.

We recommend traders hold on to the long positions initiated at 34,352 pts, or the closing level of 24 May. For risk management purposes, the initial stop loss is placed at 33,700 pts.

The immediate support marked at 34,170 pts – the low of 27 May – and followed by 33,700 pts. On the upside, the immediate resistance is seen at 34,550 pts, followed by 34,700 pts.

Source: RHB Securities Research - 2 Jun 2021