LOCAL MARKET
FKLI Apr month dropped 14 points or 0.96% to closed lower at 1448. The FBM KLCI closed lower on Friday, though off its intraday low, pressured by losses in heavyweight stocks as trade tensions between the U.S. and China continued to escalate.
Overnight Dow Jones index rose 619 points to closed higher at 40212. Wall Street closed sharply higher on Friday, buoyed by strong earnings from major banks and reassurances from Boston Fed President Susan Collins that the central bank is ready to support financial markets if needed. The rally helped investors shake off a volatile week marked by sharp swings amid escalating trade tensions driven by U.S. President Donald Trump's multi-front trade war.
The actively traded FKLI contract is hovering near the lower end of a broad downward channel on the daily chart, with crucial support seen at the 1415–1410 range. Holding above this level suggests limited downside ahead. On the hourly chart, the index found support at the 1440–1445 zone following a strong rebound since April 10. We expect the market to remain supported and potentially trade with upward momentum in line with global gains. Key resistance is seen at 1470–1475; a breakout above this range could signal further recovery, while failure to break may lead to sideways consolidation. Stay cautious of potential sentiment changes. Immediate support and resistance levels are identified at 1440 and 1455, respectively.
(News Source: The Star; Reuters)
Recommend Trading Plan:
Long positions may be opened above 1448 with targets at 1455/1465 and stop-loss at 1441
Short positions may be opened below 1448 with targets at 1440/1430 and stop-loss at 1455
FCPO
FCPO Jun month rose 12 points or 0.29% to closed higher at 4212. Malaysian crude palm oil futures rebounded from earlier losses on Friday but still marked a second straight weekly decline, as the market searched for direction following the release of monthly export data.
Overnight soybean oil for the May contract rose 1.03 to closed higher at 47.35. Dalian’s active palm oil contract rose 30 points to close higher at 8212 in yesterday’s night session.
The actively traded FCPO contract, on a larger timeframe, is finding support around the 4110–4105 zone—also forming a double bottom, last tested on 16 Jan—and has since shown signs of recovery. Current price action hovers near the lower end of a downward channel, suggesting limited downside momentum. On a smaller timeframe, the market is forming higher lows, indicating a possible upward bias for today, supported by gains in rival oil markets. Immediate resistance is seen at 4225–4230; a breakout above this level could lead to further upside towards 4270–4275. If resistance holds, the market may move into sideways consolidation, with support at 4180–4175. Beware of any potential sentiment changes. The immediate support and resistance levels are pinpointed at 4200 and 4228, respectively.
(News Source: Reuters)
Recommend Trading Plan:
Long positions may be opened above 4228 with targets at 4250/4274 stop-loss at 4208
Short positions may be opened below 4228 with targets at 4200/4176 stop-loss at 4248
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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