LOCAL MARKET
FKLI May month dropped 7.5 points or 0.49% to closed lower at 1527. The FBM KLCI ended lower for the second straight session, pressured by cautious investor sentiment amid mixed performances across regional markets.
Overnight Dow Jones surged 740 points to closed higher at 42343. Wall Street surged on Tuesday, fueled by renewed investor risk appetite following U.S. President Donald Trump's latest tariff reprieve and a surprise jump in consumer confidence. A broad-based rally lifted all three major U.S. indexes, with the tech-heavy Nasdaq leading the charge, driven by strong gains in the AI-focused "Magnificent Seven" momentum stocks.
The actively traded FKLI contract continued to trend lower, breaking below the key support zone of 1531–1533, which now acts as a resistance level for any potential rebound. However, the overnight rally on Wall Street may lift market sentiment locally, potentially triggering technical buying. A breakout above the resistance could pave the way for further gains toward the 1539 level. Conversely, failure to break above may lead to renewed selling pressure, with support seen around the 1528–1526 range. Beware of any potential sentiment changes. Immediate support and resistance levels are identified at 1528 and 1533, respectively.
(News Source: The Star; Reuters)
Recommend Trading Plan:
Long positions may be opened above 1533 with targets at 1539/1545 and stop-loss at 1528
Short positions may be opened below 1533 with targets at 1528/1522 and stop-loss at 1538
FCPO
FCPO Aug month rose 35 points or 0.91% to closed higher at 3868. Malaysian palm oil futures closed higher on Tuesday, rebounding from earlier losses, even as markets braced for a potential rise in production and stock levels.
The CBOT soyoil active traded contract rose 0.22 on previous session closed. Dalian’s active palm oil contract rose 48 points to close higher at 8048 on previous night session.
The actively traded FCPO contract continues to trade within a broader downward channel, with a key resistance level at the 3870–3875 zone that must be breached for further upside. On the hourly chart, the price remains range-bound, showing firm support around the 3800–3805 level since the previous session. We now identify a new support zone at 3855–3860, the midpoint of the current sideways range. Holding above this level could potentially lift prices toward 3895, with further upside toward 3918. However, a break below this support may trigger renewed selling pressure, pulling the price back toward the bottom of the range. Beware of any potential sentiment changes. The immediate support and resistance levels are pinpointed at 3846 and 3870, respectively.
(News Source: Reuters)
Recommend Trading Plan:
Long positions may be opened above 3870 with targets at 3895/3918 stop-loss at 3850
Short positions may be opened below 3870 with targets at 3846/3820 stop-loss at 3890