Maintain long positions. The E-Mini Dow closed marginally lower yesterday, declining 30 pts to settle at 34,586 pts. Initially, after the index opened at 34,623 pts, it fell to the session low of 34,429 pts. However, it managed to recoup most of the losses and rebounded to close at 34,586 pts. As mentioned in our previous note, as long as the E-Mini Dow manages to stay above the 34,310-pt support level, the bulls are deemed as still in control of the upward movement amid mild consolidations. We expect the index to continue forming a “higher low” price pattern in the coming sessions. As the current positive momentum stays intact, we make no change to our positive trading bias.

We recommend traders stay in the long positions initiated at 34,352 pts, or the closing level of 24 May. For risk management purposes, the stop-loss threshold is fixed at 34,170 pts.

The immediate support remains unchanged at 34,310 pts – the low of 3 Jun – and followed by 34,170 pts, or the low of 27 May. The immediate resistance is pegged at 34,825 pts, ie 7 Jun’s high, and followed by 35,000 pts, which was 2021’s high.

Source: RHB Securities Research - 9 Jun 2021