LOCAL MARKET
FKLI May month dropped 17 points or 1.10% to closed lower at 1528. The FBM KLCI closed at its intraday low on Thursday, weighed down by selling pressure in banking stocks and a broadly weak performance across regional markets.
Overnight Dow Jones little changed by 1.35 points to closed almost flat at 41859. U.S. stocks ended a volatile session mostly flat on Thursday, recovering from earlier losses as Treasury yields pulled back from recent highs following the House of Representatives' approval of President Donald Trump's tax and spending bill.
The actively traded FKLI contract continued its downward trend in the previous session. From a broader perspective, the index remains within a descending channel and has recently broken below the key support zone at 1,540–1,542, which now acts as an important resistance area. On the hourly timeframe, some technical buying interest may emerge, potentially lifting the index back toward the resistance zone at 1,540–1,542—provided it can break above the 1,533 level. Otherwise, the selling momentum is likely to persist. Beware of any potential sentiment changes. Immediate support and resistance levels are identified at 1527 and 1533, respectively.
(News Source: The Star; Reuters)
Long positions may be opened above 1533 with targets at 1540/1547 and stop-loss at 1528
Short positions may be opened below 1533 with targets at 1527/1521 and stop-loss at 1538
FCPO
FCPO Aug month dropped 74 points or 1.90% to closed lower at 3820. Malaysian palm oil futures fell for a second straight session on Thursday, pressured by weaker soyoil prices and growing concerns about increasing production in the coming weeks.
CBOT soybean oil Jul month dropped 0.72 points to close lower at 49.11 on Thursday. Dalian’s active palm oil contract rose 14 points to close higher at 8046 on previous night session.
The actively traded FCPO contract closed sharply lower in the previous session and continues to trade within a downward channel on the broader timeframe. On the hourly chart, prices found support around the 3800–3805 range and have since rebounded, forming a potential double bottom. Resistance is now seen at the 3865–3870 range. A breakout above this level could trigger further technical buying toward the 3889 or even 3910 levels. However, if the price fails to breach the resistance, selling pressure may resume, potentially pushing prices back toward the 3800 support zone. Beware of any potential sentiment changes. The immediate support and resistance levels are pinpointed at 3844 and 3867, respectively.
(News Source: Reuters)
Recommend Trading Plan:
Long positions may be opened above 3867 with targets at 3889/3910 stop-loss at 3847
Short positions may be opened below 3867 with targets at 3844/3822 stop-loss at 3887