LOCAL MARKET
FKLI Apr month dropped 5.5 points or 0.36% to closed lower at 1516.5. The FBM KLCI slipped 6.03 points, or 0.4%, to close at 1,515.56 — marking its intraday low after touching a high of 1,524.50 earlier in the session. The decline came as investors took a breather to lock in recent gains, while the ringgit strengthened against the US dollar.
Overnight Dow Jones rose 300 points to closed higher at 40527. Wall Street closed higher on Tuesday, with all three major indexes posting gains as investors balanced corporate earnings results, growing optimism around President Trump’s tariff talks, and rising concerns over a potential global recession. The Dow Jones led the way among the benchmarks, while crude oil and gold prices slipped amid shifting market sentiment.
The actively traded FKLI contract continues to show upward momentum within a broader downward channel on the daily chart. In the previous session, the index faced a technical correction after reaching a high of 1526, retreating and breaking below the support range of 1519 to 1517 — which now serves as a key resistance zone for any bullish momentum to resume. Currently, the price has corrected toward the support zone of 1510 to 1508. If this level holds, we may see renewed buying interest, potentially pushing the index back toward the 1519–1517 resistance area. However, if the support fails to hold, further downside correction may follow, with the next support seen around 1502 to 1500. Stay cautious of potential sentiment changes. Immediate support and resistance levels are identified at 1510 and 1519, respectively.
(News Source: The Star; Reuters)
Recommend Trading Plan:
Long positions may be opened above 1514 with targets at 1519/1526 and stop-loss at 1508
Short positions may be opened below 1514 with targets at 1510/1502 and stop-loss at 1520
FCPO Jul month dropped 22 points or 0.55% to closed lower at 3943. Malaysian palm oil futures edged down on Tuesday for the second straight session, pressured by declines in rival edible oils and crude oil prices.
CBOT soybean oil Jul month dropped 1.13 to closed lower at 49.33. Dalian’s active palm oil contract dropped 78 points to close lower at 8084 in previous night session.
The actively traded FCPO contract remains below the lower boundary of the previous sideways range at 4080–4085 on the daily chart. This zone now acts as a key resistance level for any potential recovery. Unless the price breaks above this resistance, the market is expected to stay in a downside-biased trading mode. On the hourly chart, we maintain a "sell on rebound" view. Resistance is spotted at the 3910–3905 zone. The price appears to be forming a downward channel, with the next target likely being the previous low at 3865–3860 — now a critical support level. A break below this support could trigger further downside toward the 3835 level or even the 3805 zone. However, if the 3865–3860 support holds, the price may be forming a double bottom pattern, suggesting a potential technical rebound — albeit with limited upside. Beware of any potential sentiment changes. The immediate support and resistance levels are pinpointed at 3881 and 3907, respectively.
(News Source: NST)
Recommend Trading Plan:
Long positions may be opened above 3907 with targets at 3881/3859 stop-loss at 3887
Short positions may be opened below 3907 with targets at 3934/3956 stop-loss at 3927
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.