LOCAL MARKET
FKLI Feb month dropped 3.5 points or 0.22% to closed lower at 1553.5. The FBM KLCI ended lower on Monday, mirroring losses in regional markets as concerns over a potential global trade war escalated following U.S. President Donald Trump's broad tariff measures.
Overnight Dow Jones index dropped 122 to closed lower at 44421. Major stock indexes closed lower on Monday but recovered some losses after U.S. President Trump delayed tariffs on Mexico. The pause came as Mexico agreed to deploy 10,000 National Guard troops to curb illegal drug flows, including fentanyl.
The FKLI is trading below the support line of the downward channel at the 1553–1555 zone on the daily chart, now acting as immediate resistance, signaling a bearish outlook with a sell-on-rebound strategy. Recent selling may spark some technical buying, but upside potential appears limited. If the immediate resistance at 1553 is broken, the rebound could reach the middle of the sideways range at 1560–1561. Immediate support and resistance levels are identified at 1548 and 1553, respectively.
(News Source: The Star; Reuters)
Recommend Trading Plan:
Long positions may be opened above 1553 with targets at 1557/1561 and stop-loss at 1548
Short positions may be opened below 1553 with targets at 1548/1544 and stop-loss at 1558
FCPO
FCPO Apr month contract rose 78 points or 1.82% to closed higher at 4367. Malaysian crude palm oil futures rose for the fifth straight session on Monday, boosted by stronger Chicago soyoil and higher crude oil prices.
Overnight soybean oil for the March contract rose 0.40 to closed higher at 46.51. The China commodities market remain closed in observance of Chinese New Year, with trading set to resume on February 5.
Palm oil prices continue to hover within the downward channel on the daily chart, reaching the resistance level at 4410–4415 before pulling back. We maintain a neutral outlook for the current formation. Our strategy remains to buy on retracements, with support identified in the 4360–4365 range. A breakout above the resistance line could potentially drive prices toward 4440 or higher. Conversely, failure to break the resistance line may present selling opportunities, leading prices to trade back within the downward channel. Beware of any sentiment changes. The immediate support and resistance levels are pinpointed at 4364 and 4391, respectively.
(News Source: Reuters)
Recommend Trading Plan:
Long positions may be opened above 4364 with targets 4391/4415 at stop-loss at 4344
Short positions may be opened below 4364 with targets at 4343/4319 stop-loss at 4384
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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