LOCAL MARKET
FKLI
FKLI Feb month dropped 6.5 point or 0.41% to closed lower at 1586. The FBM KLCI closed lower on Monday, diverging from the gains in other regional indices, as more than 700 stocks finished in the red.
The Dow Jones Index cash market was closed yesterday for President’s Day and will resume trading tonight. U.S. stock futures rose Monday night, starting a holiday-shortened trading week on a positive note. A significant portion of last week’s gains came on Thursday after President Donald Trump’s proposal for reciprocal tariffs on countries imposing levies on U.S. goods reassured investors who had feared stricter measures.
The actively traded FKLI contract recently faced resistance at the 1604–1605 range and is trading with a downside bias. On the daily timeframe, after forming a double bottom at 1535–1536, the index entered a sideways consolidation phase, with the upper boundary at 1580–1585 now serving as a key support level for further upside. If this support holds, the index could see upward movement, trading above 1590 and potentially retesting the 1600 range. However, if the support fails, further correction toward 1577–1575 is likely. Stay cautious of potential sentiment changes. Immediate support and resistance levels are identified at 1584 and 1588, respectively.
(News Source: The Star; Reuters)
Recommend Trading Plan:
Long positions may be opened above 1584 with targets at 1588/1592 and stop-loss at 1579
Short positions may be opened below 1584 with targets at 1579/1575 and stop-loss at 1589
FCPO
FCPO May month contract rose 43 points or 0.96% to closed higher at 4542. Malaysian crude palm oil futures recovered from earlier losses to close higher on Monday, though gains were limited by weaker soyoil prices and lower palm oil export estimates for the first half of February.
Soybean oil was closed yesterday for President’s Day and will resume trading today. Dalian’s active palm oil contract rose 16 points to close higher at 9058 on previous night session.
The actively traded FCPO contract remains in a wide sideways consolidation range with a downside bias. The price is facing resistance below the 4545–4550 zone, forming another lower high and a downward channel on the hourly chart. Given the current setup, a sell-on-rebound strategy is preferred, with the price likely to decline toward 4470–4465. A break below this level could extend the downside toward 4445–4440. However, if the resistance range is breached, an upside moves toward 4585–4590 could be expected. Stay alert to potential sentiment changes. The immediate support and resistance levels are pinpointed at 4519 and 4542, respectively.
(News Source: Reuters)
Recommend Trading Plan:
Long positions may be opened above 4542 with targets 4564/4590 at stop-loss at 4522
Short positions may be opened below 4542 with targets at 4519/4494 stop-loss at 4562
Disclaimer: This information is intended to assist professional investors. News are credit courtesy of Reuters, Nasdaq.com, Bloomberg, CNN, Market Watch, FT.com, the Star online, forbes.com, mining.com and CNBC. The information does not constitute investment advice or an offer to invest or to provide management services and is subject to correction, completion and amendment without notice. As with all investments, there are associated risks and you could lose money investing. Prior to making any investment, a prospective investor should consult with its own investment, accounting, legal and tax advisers to evaluate independently the risks, consequences and suitability of the investment.
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