LOCAL MARKET
FKLI Apr month dropped 4.5 points or 0.30% to closed lower at 14. The FBM KLCI ended higher for the second consecutive day on Tuesday, following regional market gains amid improved investor sentiment.
Overnight Dow Jones index dropped 155 points to closed lower at 40368. UU.S. stocks closed slightly lower on Tuesday amid lingering tariff uncertainty and weakness in consumer and healthcare sectors, though strong earnings from banks offered some support to the market.
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 remain 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 1480, respectively.
(News Source: The Star; Reuters)
Recommend Trading Plan:
Long positions may be opened above 1474 with targets at 1480/1490 and stop-loss at 1469
Short positions may be opened below 1474 with targets at 1468/1458 and stop-loss at 1479
FCPO
FCPO Jul month dropped 64 points or 1.56% to closed lower at 4043. Malaysian palm oil futures declined for a second straight session on Tuesday, pressured by expectations of improved production and further weighed down by weaker performances in Dalian vegetable oils and Chicago soyoil markets.
Overnight soybean oil for the Jul contract rose 0.99 to closed higher at 47.84. Dalian’s active palm oil contract rose 20 points to close higher at 8148 in yesterday’s night session.
The actively traded FCPO contract has shifted to the July 2025 month starting today. On the daily chart, palm oil prices have broken below the lower boundary of a broad sideways consolidation between 4110 and 4105, which now serves as a key resistance zone. We maintain a bearish outlook and continue to favor a sell-on-rebound strategy. On the hourly chart, the price action is forming a downward channel. The recent session's low between 4030 and 4025 marks the support line of this channel. Some technical buying is expected toward the immediate resistance area at 4075 to 4080. A breakout above this zone could lead to a further push higher toward the 4105–4110 resistance range. However, failure to break above this level may trigger renewed selling pressure, potentially driving prices back down to retest the lower range. Beware of any potential sentiment changes. The immediate support and resistance levels are pinpointed at 4053 and 4075, respectively.
(News Source: Reuters)
Recommend Trading Plan:
Long positions may be opened above 4075 with targets at 4096/4120 stop-loss at 4055
Short positions may be opened below 4075 with targets at 4053/4026 stop-loss at 4095
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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