Maintain long positions. The E-Mini Dow was encouraged by regional peers, adding 251 pts to settle at 34,333 pts – registering a positive closing for the week and recouping the bulk of losses incurred during the previous week. The index started Friday’s session higher at 34,193 pts. Although it fell to the session’s low of 34,133 pts, bullish sentiment during the US session lifted it towards the 34,386-pt session high before settling at 34,333 pts. The index managed to climb above the 50-day SMA line and is about to resume its bullish trajectory. We observe that the 50- day SMA line is pointing upwards, offering support for the index’s upward movement. Furthermore, the index would find psychological support near 34,000 pts if profit-taking activities arise in coming sessions. With positive price actions in sight, we are keeping our positive trading bias.

Traders are recommended to keep to the long positions initiated at 34,082 pts or the closing level of 24 Jun. To mitigate risks, the stop-loss is revised higher to 33,752 pts.

The immediate support is revised to the 34,000-pt psychological level, followed by the low of 23 Jun, or 33,752 pts. The immediate resistance is eyed at 34,500 pts, followed by 7 Jun’s high of 34,825 pts.

Source: RHB Securities Research - 28 Jun 2021