LOCAL MARKET
FKLI Feb month rose 5.5 points or 0.35% to closed higher at 1557. The FBM KLCI recovered from early losses to close the holiday-shortened trading week on a positive note on Friday session, supported by renewed buying interest despite thin trading, according to an analyst.
Overnight Dow Jones index dropped 337 to closed lower at 44544. U.S. stocks closed lower on Friday as indexes declined following the White House announcement that President Donald Trump would impose 25% tariffs on Canadian and Mexican imports and 10% on Chinese goods starting Saturday. Investors had been anticipating further tariff developments, as Trump had frequently signaled his intent to use such measures. The uncertainty surrounding the economic and inflationary impacts of these tariffs has added to market concerns.
The FKLI formation remains bearish on the daily chart, with the index trading near the bottom of its downward channel. However, it is currently holding above the 1550–1555 area, a critical support zone that aligns with the retracement correction level of the recent uptrend since January 17. If this support fails to hold, we may see selling pressure resume, continuing the bearish rebound trend. Immediate support and resistance levels are identified at 1556 and 1560, respectively.
(News Source: The Star; Reuters)
Recommend Trading Plan:
Long positions may be opened above 1560 with targets at 1564/1568 and stop-loss at 1555
Short positions may be opened below 1560 with targets at 1556/1552 and stop-loss at 1565
FCPO
FCPO Apr month contract rose 10 points or 0.23% to closed higher at 4289. Malaysian crude palm oil futures recovered from early losses to close higher on Friday, marking a second consecutive weekly gain. The rise was driven by stronger Chicago soyoil prices and a weaker currency, which outweighed market concerns about Indonesia's export rates and potential U.S. tariff threats.
Overnight soybean oil for the March contract rose 1.13 to closed higher at 46.11. The China commodities market remain closed in observance of Chinese New Year, with trading set to resume on February 5.
Palm oil prices remain within a downward channel on the daily chart, suggesting a neutral outlook as the market consolidates. On the hourly chart, prices have broken above a key resistance range at 4280–4285, which now serves as support. If this support holds, there is potential for prices to move toward 4350–4360. However, if the support range gives way, the market may face renewed selling pressure. Beware of any sentiment changes. The immediate support and resistance levels are pinpointed at 4286 and 4313, respectively.
(News Source: Reuters)
Recommend Trading Plan:
Long positions may be opened above 4313 with targets 4336/4358 at stop-loss at 4293
Short positions may be opened below 4313 with targets at 4286/4265 stop-loss at 4333
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