Maintain long positions. The E-Mini Dow saw bullish momentum tapering yesterday, declining 81 pts to settle at 34,381 pts – a shaky start for the week’s first trading session. The index started Monday’s session at 34,451 pts. After tapping the session’s high of 34,558 pts, it fell to the session’s low of 34,203 pts before rebounding to close at 34,381 pts. We observed that for the past couple of sessions, the index has been moving sideways between the 34,825-pt resistance level and 34,310-pt support level. A breakout from either boundary will see the momentum pick up, forming a new trend in the coming sessions. Pending the breakout, we maintain our positive trading bias.

We recommend that traders stick to the long positions initiated at 34,352 pts, or the closing level of 24 May. To manage downside risks, the stop-loss threshold is keep at the low of 3 Jun, or 34,310 pts.

The immediate support remains 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 pegged at 34,825 pts, or 7 Jun’s high, followed by 35,000 pts, which is 2021’s high.

Source: RHB Securities Research - 15 Jun 2021