LOCAL MARKET
FKLI
FKLI Mar month dropped 16.5 points or 1.07% to closed lower at 1532. The FBM KLCI tumbled on Tuesday amid heavy selling pressure, as decliners outnumbered gainers by more than seven to one, highlighting weak market sentiment following the implementation of U.S. President Donald Trump’s tariffs.
Overnight Dow Jones index dropped 670 points to closed lower at 42520. U.S. stocks closed lower on Tuesday, with the tech-heavy Nasdaq nearing correction territory, as trade tensions intensified after U.S. President Donald Trump imposed new tariffs on Canada, Mexico, and China.
The actively traded FKLI contract extended its decline after breaking below the bottom of the sideways range at 1,538–1,540, which now serves as a crucial resistance level for any potential upside reversal. From a broader perspective, FKLI remains within a downward channel, keeping the "sell on rebound" strategy intact. If bearish sentiment persists, the index could move toward the 1,514–1,516 range, which aligns with the support line of the downward channel. cautious of potential sentiment changes. Immediate support and resistance levels are identified at 1525 and 1531, respectively.
(News Source: The Star; Reuters)
Recommend Trading Plan:
Long positions may be opened above 1531 with targets at 1537/1542 and stop-loss at 1526
Short positions may be opened below 1531 with targets at 1525/1520 and stop-loss at 1536
FCPO
FCPO May month contract dropped 135 points or 3.01% to closed lower at 4349. Malaysian crude palm oil futures ended lower on Tuesday, pressured by weaker Dalian oils and worries over China's potential retaliation against new U.S. tariffs on Chinese goods.
Overnight soybean oil for the May contract dropped 0.65 to closed lower at 42.84. Dalian’s active palm oil contract dropped 120 points to close lower at 8790 on previous night session.
The actively traded FCPO contract extended its decline in the previous session after breaking below the crucial support range of 4,420–4,425, which also represents the mid-point of the sideways range. This breakdown suggests continued downside momentum, with a "sell on rebound" strategy remaining the key approach. A new support zone has formed at 4,330–4,335; if this level holds, technical buying could emerge, though with limited upside. The nearest resistance is at 4,365–4,370. However, if the support fails, prices may decline further toward the 4,290–4,280 range. Beware of any potential sentiment changes. The immediate support and resistance levels are pinpointed at 4333 and 4367, respectively.
(News Source: Reuters)
Recommend Trading Plan:
Long positions may be opened above 4350 with targets at 4367/4396 stop-loss at 4330
Short positions may be opened below 4350 with targets at 4333/4308 stop-loss at 4370
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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