LOCAL MARKET
FKLI Apr month dropped 7 points or 0.47% to closed lower at 1490. The FBM KLCI ended flat on Monday as investors remained cautious amid external uncertainties, while the ringgit strengthened to its highest level in approximately 12 weeks against the US dollar.
Overnight Dow Jones slides more than 950 to closed lower at 38170. U.S. stocks posted sharp losses on Monday after President Donald Trump intensified his criticism of Federal Reserve Chair Jerome Powell, raising concerns over the Fed’s independence amid ongoing market unease surrounding the administration’s unpredictable trade policies.
The actively traded FKLI contract remains within a downward channel on the daily chart, while the index is currently showing upward movement. Crucial support is seen in the 1473–1470 range. Today's movement is likely to be bearish, tracking the sharp drop in the overnight U.S. market. If the support holds, the index may move toward an upside bias, though potential gains are expected to be limited. However, if the support is broken, further downside toward the 1460–1463 range could be seen. Stay cautious of potential sentiment changes. Immediate support and resistance levels are identified at 1478 and 1488, respectively.
(News Source: The Star; Reuters)
Recommend Trading Plan:
Long positions may be opened above 1483 with targets at 1488/1497 and stop-loss at 1477
Short positions may be opened below 1483 with targets at 1478/1470 and stop-loss at 1489
FCPO
FCPO Jul month dropped 65 points or 1.64% to closed lower at 3910. Malaysian palm oil futures declined for the sixth consecutive session on Monday, pressured by weakness in soyoil and crude oil, a stronger ringgit, and ongoing concerns over U.S. tariffs.
CBOT soybean oil declined 0.03 to closed slightly lower at 48.31. Dalian’s active palm oil contract dropped 96 points to close lower at 7980 in yesterday’s night session.
The actively traded FCPO contract continued its downward momentum, with prices remaining within a broad descending channel. We maintain a sell-on-rebound strategy, as the overall bias remains bearish with potential for further downside. On the hourly chart, a minor downward channel is also visible, with prices recently touching the support zone at 3860–3865. We may see some sideways consolidation within the range of 3905–3910 (top) and 3860–3865 (bottom). A breakout on either side could set the direction for the next move. However, if the price breaks to the upside, the room for further gains appears limited. Beware of any potential sentiment changes. The immediate support and resistance levels are pinpointed at 3866 and 3881, respectively.
(News Source: Reuters)
Recommend Trading Plan:
Long positions may be opened above 3881 with targets at 3904/3927 stop-loss at 3861
Short positions may be opened below 3881 with targets at 3866/3842 stop-loss at 3901
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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