LOCAL MARKET
FKLI
FKLI Feb month dropped 5.5 point or 0.35% to closed lower at 1578. The FBM KLCI trimmed some losses but remained under selling pressure, mirroring the weaker sentiment across most regional markets.
Overnight Dow Jones index dropped 450 points to closed lower at 44176. U.S. stocks declined on Thursday as persistent tariff concerns and a disappointing forecast from Walmart weighed on investor sentiment. A broad selloff pushed all three major stock indexes into negative territory, with the Dow Jones Industrial Average taking the biggest hit, falling 1.01%. Meanwhile, the S&P 500 ended its two-day streak of record closing highs.
The actively traded FKLI contract continues to trade within a broader downward channel, maintaining bearish momentum after the index fail to break above 1604 – 1605 range. On the hourly chart, the price has broken below the upper boundary of the previous sideways consolidation and failed to hold above the 1582 level, confirming a downtrend. The primary strategy remains selling on rebounds. Currently, the price is finding support in the 1570–1572 range. A break below this level could lead to a further decline toward the crucial support zone at 1563–1562, which has been key to the uptrend since early February. Stay cautious of potential sentiment changes. Immediate support and resistance levels are identified at 1570 and 1575, respectively.
(News Source: The Star; Reuters)
Recommend Trading Plan:
Long positions may be opened above 1570 with targets at 1575/1579 and stop-loss at 1565
Short positions may be opened below 1570 with targets at 1566/1562 and stop-loss at 1575
FCPO
FCPO May month contract dropped 30 points or 0.64% to closed lower at 4642. Malaysian crude palm oil futures declined on Thursday due to profit-taking and weaker export estimates through February 20.
Overnight soybean oil for the May contract dropped 0.94 to closed lower at 46.80. Dalian’s active palm oil contract rose 88 points to close higher at 9224 on previous night session.
The actively traded FCPO contract is trading above the upper boundary of a wide sideways consolidation range (4645–4650) on the daily chart, indicating strong support and potential for further upward movement. The price is testing the 4695–4700 resistance level for the third time and is currently hovering within this range.
On the hourly chart, the price is moving within an upward channel pattern, suggesting a bullish trend. We will continue to monitor whether the resistance range can be broken again, with potential upside targets at 4728 and a possible high of 4753. However, if the price fails to break above the 4700 range, selling pressure may emerge, leading to consolidation. The immediate support and resistance levels are pinpointed at 4673 and 4700, respectively.
(News Source: Reuters)
Recommend Trading Plan:
Long positions may be opened above 4700 with targets 4728/4753 at stop-loss at 4680
Short positions may be opened below 4700 with targets at 4673/4646 stop-loss at 4720
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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