LOCAL MARKET
FKLI Apr month rose 11 points or 0.74% to closed higher at 1496.5. The FBM KLCI closed above the psychological 1,500-point level on Wednesday, lifted by positive sentiment across regional markets. The improved mood was driven by encouraging external cues, particularly remarks from U.S. President Donald Trump, who eased market concerns by stating he has no intention of removing Federal Reserve Chair Jerome Powell and that tariffs on China would remain well below the current 145% rate.
Overnight Dow Jones rise 419 to closed higher at 39606. Major stock indexes climbed on Wednesday, the dollar strengthened against the euro and other currencies, while safe-haven gold fell, as the Trump administration indicated a possible de-escalation in its trade tensions with China.
The actively traded FKLI contract continues to move within a broader downward channel on the daily chart, but shows upward momentum driven by technical buying. In the shorter time frame, the index remains within an upward channel, with support holding above the 1488–1489 zone since the previous session. We maintain our buy-on-retracement view, with the potential for the index to move toward the 1515–1518 range if it stays supported above the 1496–1498 area. Otherwise, a sideways consolidation is likely, with key support seen at the 1493–1494 range. Stay cautious of potential sentiment changes. Immediate support and resistance levels are identified at 1496 and 1505, respectively.
(News Source: The Star; Reuters)
Recommend Trading Plan:
Long positions may be opened above 1496 with targets at 1505/1513 and stop-loss at 1490
Short positions may be opened below 1496 with targets at 1488/1480 and stop-loss at 1502
FCPO
FCPO Jul month rose 71 points or 1.79% to closed higher at 4024. Malaysian crude palm oil futures ended higher on Wednesday, lifted by bargain buying and stronger sentiment in the broader edible oils market.
CBOT soybean oil Jul month rose 0.31 to closed higher at 48.34. Dalian’s active palm oil contract rose 68 points to close higher at 8218 in yesterday’s night session.
The actively traded FCPO contract remains in a broader downtrend on the daily chart, but is currently showing signs of upward momentum driven by technical buying. On the hourly chart, the price recently broke above the resistance line of a minor descending channel and continued trending higher. We maintain a buy-on-retracement outlook, with key resistance seen at the 4050–4055 zone. A breakout above this level could potentially lead to a further rise toward 4080 or even the 4100 range. However, failure to break above may result in sideways movement, with crucial support seen around the 4000 level. Beware of any potential sentiment changes. The immediate support and resistance levels are pinpointed at 4030 and 4054, respectively.
(News Source: Reuters)
Recommend Trading Plan:
Long positions may be opened above 4054 with targets at 4078/4102 stop-loss at 4034
Short positions may be opened below 4054 with targets at 4030/4009 stop-loss at 4074
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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