LOCAL MARKET
FKLI Feb month rose 10 points or 0.64% to closed higher at 1563.5. The FBM KLCI closed higher on Tuesday as traders shifted their focus to bargain hunting, shrugging off concerns over tariffs.
Overnight Dow Jones index rose 134 to closed higher at 44556. The three major stock indexes closed higher on Tuesday, lifted by energy stocks and optimism over a potential U.S.-China trade breakthrough after President Trump delayed tariffs on Canada and Mexico. Meanwhile, new U.S. tariffs on Chinese imports took effect, met with Chinese countermeasures, though no timeline for further talks was set, with Trump expressing no urgency.
The FKLI active contract is holding above the support line of the downward channel at 1553-1555 on the daily chart, indicating support in the broader trend. On the hourly chart, it is trading above the midpoint of the sideways range at 1560-1562. We recommend a buy-on-retracement strategy for short-term trades, with potential upside toward 1670-1673. However, if the index fails to hold above the midpoint, consider switching to a selling strategy, as it may signal further downside. Beware of any sentiment changes. Immediate support and resistance levels are identified at 1559 and 1568, respectively.
(News Source: The Star; Reuters)
Recommend Trading Plan:
Long positions may be opened above 1563 with targets at 1568/1573 and stop-loss at 1558
Short positions may be opened below 1563 with targets at 1559/1554 and stop-loss at 1568
FCPO
FCPO Apr month contract dropped 59 points or 1.35% to closed lower at 4308. Malaysian crude palm oil futures edged lower on Tuesday, snapping a five-session winning streak, as Chicago soyoil prices dropped following news of the U.S. delaying import tariffs on Mexico and Canada.
Overnight soybean oil for the March contract dropped 0.75 to closed lower at 45.76. The Chinese commodities markets are open today.
The FCPO active contract remains within a downward channel on the daily chart, with the price touching the resistance line at 4410-4415 before pulling back, maintaining a bearish bias unless the resistance is decisively broken. However, on the hourly chart, the price is trading above the former sideways range at 4275-4280, which now serves as crucial support for the uptrend established since January 28. New support is seen at 4320-4325 and we recommend a buy-on-retracement approach for short-term trades, anticipating further upside toward the resistance zone at 4370-4375. Beware of any sentiment changes. The immediate support and resistance levels are pinpointed at 4322 and 4349, respectively.
(News Source: Reuters)
Recommend Trading Plan:
Long positions may be opened above 4322 with targets 4349/4375 at stop-loss at 4302
Short positions may be opened below 4322 with targets at 4295/4272 stop-loss at 4342
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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