Maintain long positions. Last Friday, the E-Mini Dow’s bulls relentlessly progressed higher, adding 163 pts to settle at 34,677 pts. The index started Friday’s session at USD34,510 pts. It formed an intraday low at 34,491 pts and then reversed to the intraday high of 34,714 pts. It ended the week on a positive note at 34,677 pts – registering back-to-back weekly gains. At time of writing, the E-Mini Dow has touched 34,725 pts. With strong momentum displayed by the bulls, it is likely that the index will climb higher on coming sessions. The bulls may be set to test June’s high of 34,825 pts. If the immediate resistance is breached, the index may follow its US peers to record a fresh high, by testing the current 35,000-pt all-time high. Amidst the bullish momentum, we keep 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 34,082 pts, which is the breakeven point.

The immediate support is revised higher to 34,377 pts, or the low of 1 July, followed by 34,000 pts. Meanwhile, the immediate resistance is eyed at 34,825 pts, followed by 35,000 pts, or the all-time high.

Source: RHB Securities Research - 6 Jul 2021