LOCAL MARKET
FKLI May month rose 11.5 points or0.75% to closed higher at 1531. The FBM KLCI trimmed earlier losses on Friday session, as hopes of potential US-China trade talks helped cushion local profit-taking pressures.
Overnight Dow Jones rose 564 points to closed higher at 41317. Wall Street and European markets rallied on Friday, boosted by a strong U.S. jobs report and signs that China may be open to tariff talks. All three major U.S. indexes gained over 1%, led by strong performances in financials, transportation, and semiconductor stocks. Treasury yields also surged as investor confidence improved.
The actively traded FKLI contract continues to show upward momentum, despite remaining within a broader downward channel on the daily chart. Key support is identified at the 1528–1532 zone. The index is forming a minor uptrend, and we maintain our view to adopt a buy-on-retracement strategy. Immediate support lies at the 1538–1534 range; holding above this level would keep the bullish outlook intact. However, if this support fails, a technical correction may follow, though the downside appears limited as overall structure remains supported. Immediate support and resistance levels are identified at 1538 and 1545, respectively.
(News Source: The Star; Reuters)
Recommend Trading Plan:
Long positions may be opened above 1538 with targets at 1545/1553 and stop-loss at 1532
Short positions may be opened below 1538 with targets at 1531/1524 and stop-loss at 1544
FCPO
FCPO Jul month dropped 30 points or 0.77% to closed lower at 3881. Malaysian palm oil futures gave up earlier gains on Friday, pressured by a stronger ringgit and sluggish demand from major markets, ending the week with a loss.
CBOT soybean oil Jul month dropped 0.27 to closed lower at 49.43. Dalian market remains closed from May 1–5 for the 2025 Labor Day holiday and will reopen on May 6.
The actively traded FCPO contract continues to trade below the 4080–4085 zone, previously the bottom of a sideways consolidation range. A new downward channel has formed below this level, and we maintain a sell-on-rebound strategy. If the price rebounds toward the 3920–3915 area and faces resistance, renewed selling pressure is expected. Immediate support is seen at 3865–3860; a break below this level could open the path toward further downside, potentially reaching the 3800–3795 range. Beware of any potential sentiment changes. The immediate support and resistance levels are pinpointed at 3865 and 3893, respectively.
(News Source: Reuters)
Recommend Trading Plan:
Long positions may be opened above 3893 with targets at 3916/3943 stop-loss at 3873
Short positions may be opened below 3893 with targets at 3865/3841 stop-loss at 3913
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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