Maintain long positions. The E-Mini Dow started the second half of the year on a positive note, advancing 115 pts to settle at 34,514 pts. On Thursday, the index started off at USD34,448 pts. Tracking its Asian peers, it rose to the 34,551-pt session high. Despite mild profit-taking dragging it to the 34,377-pt session low, it managed to rebound and close in positive territory. As the index stays firm above the 50-day SMA line, the bulls are setting their sights on testing June’s high. If it manages to cross 34,651 pts, it will then challenge the higher hurdle at 34,825 pts. Meanwhile, mild profit-taking is on the cards, moving closer to the eve of the holiday. We expect the 34,000-pt level to be retained. For now, we make no changes to our positive trading bias.

We suggest traders keep to their long positions initiated at 34,082 pts, or the closing level of 24 Jun. For risk management, the stop-loss is set at 33,900 pts.

The immediate support is fixed at the 34,000-pt psychological level, followed by the low of 23 Jun, or 33,752 pts. Conversely, the immediate resistance is expected at the high of 8 Jun or 34,651 pts, followed by 7 Jun’s high, or 34,825 pts.

Source: RHB Securities Research - 7 Jul 2021