LOCAL MARKET
FKLI Apr month rose 31.5 points or 2.18% to closed higher at 1479.5. The FBM KLCI closed at its intra-day high on Monday, lifted by broad-based buying interest and mirroring the positive performance of regional markets.
Overnight Dow Jones index rose 312 points to closed higher at 40524. U.S. stocks closed higher on Monday, with Apple leading gains and providing the biggest lift to the S&P 500 after the White House exempted smartphones and computers from new tariffs. However, lingering uncertainty over future tariffs capped overall optimism, causing the major indexes to finish below their session highs. Investors remain concerned about how companies will navigate supply chain disruptions amid anticipated tariff changes.
The actively traded FKLI contract continues to hover near the lower boundary of a broad downward channel on the daily chart, with key resistance located around the 1480–1475 zone. This area will be critical in determining whether buying momentum can gain traction or if the prevailing downside bias will remain intact. On the shorter timeframe, the index is finding support around the 1465–1468 range. We anticipate a “buy on retracement” strategy for the next move. A breakout above the 1480–1475 resistance could trigger further buying interest toward the 1490–1492 region. However, failure to break above may lead to some technical selling or a sideways consolidation phase, with limited downside risk likely contained near the 1465–1468 support zone. Stay cautious of potential sentiment changes. Immediate support and resistance levels are identified at 1468 and 1485, respectively.
(News Source: The Star; Reuters)
Recommend Trading Plan:
Long positions may be opened above 1476 with targets at 1485/1495 and stop-loss at 1470
Short positions may be opened below 1476 with targets at 1468/1458 and stop-loss at 1482
FCPO
FCPO Jun month dropped 42 points or 1% to closed lower at 4170. Malaysian crude palm oil futures ended lower on Monday, pressured by weakness in rival soyoil on the Chicago market and dampened sentiment due to escalating U.S.-China trade tensions, despite a temporary suspension of tariffs on other nations.
Overnight soybean oil for the May contract dropped 1.03 to closed lower at 46.32. Dalian’s active palm oil contract dropped 34 points to close lower at 8154 in yesterday’s night session.
The actively traded FCPO contract on the daily chart has broken below the support line of the downward channel in the 4165–4170 range and continues to trade lower. This level also represents the lower boundary of a sideways consolidation zone seen on the hourly chart, which now acts as a key resistance area. We anticipate a “sell on rebound” strategy for the next move. Immediate resistance is now seen at 4145–4140. A break above this range may trigger a limited upside toward 4170–4165. Conversely, a break below could lead to further downside potential toward 4115–4110, or even lower. Beware of any potential sentiment changes. The immediate support and resistance levels are pinpointed at 4116 and 4143, respectively.
(News Source: Reuters)
Recommend Trading Plan:
Long positions may be opened above 4143 with targets at 4170/4196 stop-loss at 4123
Short positions may be opened below 4143 with targets at 4116/4089 stop-loss at 4163
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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