Maintain long positions. After last Thursday’s weakness, the E-Mini Dow ended the week on a positive note after reversing its direction last Friday – surging 457 pts to settle at 34,751 pts. The index opened at 34,290 pts on Friday, before falling to the 34,140-pt session low. It then changed its direction, moving upwards to touch the day’s high of 34,784 pts, before retracing mildly to close at 34,751 pts. The price action is consistent with the buying pressure seen above the 34,000-pt level and the 50-day SMA line. In fact, this has solidified the uptrend momentum for the coming sessions. Based on this, we keep our positive trading bias.

Traders are recommended to stay in the long positions initiated at 34,082 pts, or the closing level of 24 Jun. To manage risks, the trailing-stop is pegged at a level just below the 50-day SMA line, at 34,150 pts.

The immediate support is revised to 34,377 pts – the low of 1 Jul – and the 34,000-pt psychological level. Meanwhile, the resistance levels are set at 34,825 pts (7 Jun’s high), and 35,000 pts, or the high of 10 May.

Source: RHB Securities Research - 12 Jul 2021