Maintain long positions. The E-Mini Dow continued moving sideways for consolidations on the latest session, merely added 1-pt to settle at 34,462 pts – concluded the week at negative territory. Last Friday, the index started the session flat at 34,459 pts. It marked the day high of 34,614 pts during US early trading session. It then saw momentum faltered and fell to 34,313-pt day low, to close at 34,462 pts. The index found a footing near the 34,310- pt support level. If the support level gives way, the correction that started from 34,825 pts may extend lower. In the meantime, it may consolidate above the support level. As the RSI remains above the 50% threshold, there is a possibility of a technical rebound in the coming sessions, if the bulls regain strength. As the support level or 34,310 stop-loss point is intact, we are sticking to our positive trading bias.

We recommend that traders hold on to the long positions initiated at 34,352 pts, or the closing level of 24 May. For risk management purposes, the stop-loss threshold is set at the low of 3 Jun, or 34,310 pts.

The immediate support is fixed at 34,310 pts, or the low of 3 Jun, followed by 34,170 pts – the low of 27 May. On the other hand, the immediate resistance is seen at 34,825 pts, or 7 Jun’s high, followed by 35,000 pts, which is 2021’s high.

Source: RHB Securities Research - 14 Jun 2021