LOCAL MARKET
FKLI
FKLI Mar month rose 6.5 points or 0.42% to closed higher at 1548.5. The FBM KLCI extended its decline for the fourth straight session on Monday, pressured by weak sentiment and ongoing profit-taking.
Overnight Dow Jones index dropped 649 points to closed lower at 43191. U.S. stocks tumbled on Monday, with the S&P 500 recording its steepest daily percentage drop since December 18, after President Donald Trump announced that 25% tariffs on Canada and Mexico would take effect on Tuesday. The remarks drove U.S. indexes to session lows, while the Canadian dollar and Mexican peso weakened to one-month lows. Meanwhile, the euro strengthened as European leaders agreed to draft a Ukraine peace plan.
We maintain our view that the actively traded FKLI contract remains within a broader downward channel. While trading within this range, it has formed a triple bottom around the 1,538–1,540 zone, indicating potential technical buying. A new support level has emerged at 1,545–1,546, and holding above this range could sustain a buying strategy. However, if this support fails, further selling pressure may be triggered, potentially retesting the previous bottom. Stay cautious of potential sentiment changes. Immediate support and resistance levels are identified at 1546 and 1551, respectively.
(News Source: The Star; Reuters)
Recommend Trading Plan:
Long positions may be opened above 1551 with targets at 1556/1560 and stop-loss at 1546
Short positions may be opened below 1551 with targets at 1546/1541 and stop-loss at 1556
FCPO
FCPO May month contract dropped 70 points or 1.54% to closed lower at 4484. Malaysian crude palm oil futures ended lower on Monday, pressured by declines in rival oils and weaker palm oil exports in February.
Overnight soybean oil for the May contract dropped 0.63 to closed lower at 43.49. Dalian’s active palm oil contract dropped 44 points to close lower at 9036 on previous night session.
The actively traded FCPO contract has broken below the support level of a minor sideways consolidation at 4480–4485, which now acts as a resistance zone. The price is attempting to form a minor downward channel on the hourly chart, with a sell-on-rebound strategy as the primary approach for the upcoming session. However, this appears to be a technical correction, with potential downside extending to 4435–4430 if the 4455–4460 level is breached. The 4435–4430 zone serves as a critical support level for the continuation of the upside. If it holds, this area could present a buying opportunity; if it fails, stronger selling pressure is likely to emerge. Beware of any potential sentiment changes. The immediate support and resistance levels are pinpointed at 4458 and 4480, respectively.
(News Source: Reuters)
Recommend Trading Plan:
Long positions may be opened above 4480 with targets at 4501/4526 stop-loss at 4460
Short positions may be opened below 4480 with targets at 4458/4435 stop-loss at 4500
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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