27 Feb 2025 BMD Local Market

LOCAL MARKET 

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FKLI

FKLI Feb month jumped 19 points or 1.21% to closed higher at 1589.5. The FBM KLCI rebounded following Tuesday’s sell-off, supported by buying interest in banking and Petronas-linked stocks.

Overnight Dow Jones index dropped 188 points to closed lower at 43433. U.S. stocks ended mixed on Wednesday amid renewed tariff threats, while a draft U.S.-Ukraine deal on critical minerals and strong corporate earnings propelled European shares to a record high.

The actively traded FKLI contract remains within a downward channel on the daily timeframe, currently hovering around the resistance line at 1,590–1,592, with signs of a pullback. Recent price action has broken above the previous resistance at 1,581–1,583, which now serves as a key support range. Yesterday’s bullish engulfing candle signals further upside potential. Our primary strategy is to buy on retracements, while resistance remains at 1,590–1,592. A breakout above this range could extend gains toward 1,597–1,599.  Stay cautious of potential sentiment changes. Immediate support and resistance levels are identified at 1585 and 1590, respectively.

(News Source: The Star; Reuters)

Recommend Trading Plan:

Long positions may be opened above 1585 with targets at 1590/1594 and stop-loss at 1580

Short positions may be opened below 1585 with targets at 1580/1575 and stop-loss at 1590

FCPO 

FCPO May month contract rose 46 points or 1.01% to closed higher at 4611. Malaysian crude palm oil futures climbed for a second consecutive session on Wednesday, driven by bargain buying despite a bearish outlook from industry analysts.

Overnight soybean oil for the May contract dropped 0.46 to closed lower at 45.59. Dalian’s active palm oil contract dropped 24 points to close lower at 9156 on previous night session.

The actively traded FCPO contract continues to consolidate sideways, with a narrowing range signaling a potential breakout in either direction. However, the bias remains tilted to the downside as prices trade below the mid-range of 4,585–4,590. The primary strategy is to sell on rebounds, with an expected move toward the 4,535–4,540 zone. A break below this level could extend declines toward 4,490–4,485. Beware of any potential sentiment changes. The immediate support and resistance levels are pinpointed at 4539 and 4565, respectively.

(News Source: Reuters)

Recommend Trading Plan:

Long positions may be opened above 4592 with targets at 4617/4642 stop-loss at 4572

Short positions may be opened below 4592 with targets at 4565/4539 stop-loss at 4612

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.