Maintain long positions. The E-Mini Dow saw the bullish momentum accelerate yesterday, sending the index 229 pts higher to settle at 34,399 pts. On Wednesday, the session initially opened at 34,185 pts. It formed the session low at 34,006 pts, then moved up to touch the session high at 34,450 pts. Although at one point it crossed the 34,411-pt resistance mark, it retraced lower to close at 34,399 pts. Yesterday’s price action reaffirmed the strong support formed at the 34,000-pt level – buying interest emerged near this support level. With the renewed momentum, it is likely that the E-Mini Dow will retest its immediate resistance soon. Premised on this, we continue to stick with our positive trading bias.

Traders are recommended to maintain their long positions initiated at 34,082 pts, or the closing level of 24 Jun. For risk-management purposes, the stop-loss mark is fixed at 33,752 pts.

The immediate support stays at the 34,000-pt psychological level, followed by the low of 23 Jun, ie 33,752 pts. On the upside, the immediate resistance is seen at 34,411 pts – the high of 28 Jun – and followed by 7 Jun’s high, ie 34,825 pts.

Source: RHB Securities Research - 1 Jul 2021