LOCAL MARKET
FKLI Apr month rose 13 points or 0.86% to closed higher at 1522. The FBM KLCI closed higher on Monday, rebounding from losses caused by Trump's Liberation Day announcement, as easing U.S.-China trade tensions helped lift investor sentiment.
Overnight Dow Jones rose 114 points to closed higher at 40227. The S&P 500 and the Dow closed higher after a choppy session on Monday, while gold prices rose as investors awaited signs of progress in tariff negotiations amid a busy week of corporate earnings and economic data.
The actively traded FKLI contract continues its upward momentum within the broader downward channel on the daily chart. The recent movement has successfully broken above the crucial resistance zone at 1516–1518, which now acts as an important support area. We maintain a buy-on-retracement strategy, with the next resistance to watch at the 1534–1538 range. If the 1516–1518 support fails to hold, a technical correction could occur, though any downside is expected to be limited, with key support seen at the 1510–1509 range. Stay cautious of potential sentiment changes. Immediate support and resistance levels are identified at 1518 and 1526, respectively.
(News Source: The star, Reuters)
Long positions may be opened above 1518 with targets at 1526/1534 and stop-loss at 1512
Short positions may be opened below 1518 with targets at 1510/1502 and stop-loss at 1524
FCPO
FCPO Jul month dropped 92 points or 2.27% to closed lower at 3965. Malaysian palm oil futures ended lower on Monday, dragged down by expectations of higher production and additional pressure from weaker Chicago soyoil prices.
CBOT soybean oil Jul month rose 0.65 to closed higher at 50.46. Dalian’s active palm oil contract dropped 80 points to close lower at 8182 in previous night session.
The actively traded FCPO contract remains below the lower boundary of the previous sideways range at 4080 to 4085 on the daily chart. This zone acts as a key resistance area for any potential recovery; otherwise, the market is likely to stay biased to the downside. On the hourly chart, the price is moving within an upward channel, with support spotted around the 3950 to 3945 range. Buying interest has been observed near the support line. Immediate resistance is seen at 4000 to 4005 — holding above this range could encourage further buying momentum, with the next target at 4055 to 4060. However, if the support fails to hold, selling pressure may resume. Beware of any potential sentiment changes. The immediate support and resistance levels are pinpointed at 3978 and 4004, respectively.
(News Source: Reuters)