LOCAL MARKET
FKLI Apr month dropped 10 points or 0.69% to closed lower at 1514.5. The FBM KLCI ended lower on Thursday, pressured by fragile market sentiment following U.S. President Donald Trump’s announcement of reciprocal tariffs. However, late-session buying helped pare losses, despite broad declines across regional equities.
Overnight Dow Jones index falls 1679 points to closed lower at 40545. Wall Street plunged on Thursday, posting its largest one-day percentage drop in years, as U.S. President Donald Trump's sweeping tariffs fueled fears of a full-blown trade war and a global economic downturn. In response, investors rushed to safer assets like government bonds after Trump imposed a 10% tariff on most U.S. imports, along with significantly higher levies on multiple countries.
The actively traded FKLI contract remains within an upward channel on the daily timeframe, with crucial support at 1502–1504. Given the negative sentiment in the global market, a break below this support could trigger further downside, potentially reaching the 1490–1492 range. However, if the index holds above 1502–1504, buying momentum may emerge, sustaining the upward channel movement. Coming back above 1507–1508 could see further upside. Stay cautious of potential sentiment changes. Immediate support and resistance levels are identified at 1502 and 1508, respectively.
(News Source: The Star; Reuters)
Recommend Trading Plan:
Long positions may be opened above 1502 with targets at 1508/1513 and stop-loss at 1497
Short positions may be opened below 1502 with targets at 1496/1490 and stop-loss at 1507
FCPO
FCPO Jun month dropped 28 points or 0.62% to closed lower at 4489. Malaysian palm oil futures declined on Thursday, ending a four-session rally, as profit-taking pressure set in after U.S. President Donald Trump announced reciprocal tariffs on trade partners.
Overnight soybean oil for the May contract rose 1.06 to closed higher at 48.50. Dalian’s active palm oil contract rose 32 points to close higher at 9296 on previous night session.
The actively traded FCPO contract remains within a broad sideways range. In the previous night session, prices dropped sharply, breaking below the crucial support at 4435–4430, which now acts as key resistance. This move suggests a continued bearish outlook, with a sell-on-rebound strategy favored. Currently, prices are trading within a downward channel, with immediate support at 4475–4480. A failure to hold this level could lead to further downside toward 4350–4355, with the lowest target around 4330–4325. However, if support at 4475–4480 holds, a limited recovery may be seen. Beware of any potential sentiment changes. The immediate support and resistance levels are pinpointed at 4376 and 4404, respectively.
(News Source: Reuters)
Recommend Trading Plan:
Long positions may be opened above 4376 with targets at 4404/4431 stop-loss at 4356
Short positions may be opened below 4376 with targets at 4351/4328 stop-loss at 4396
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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