LOCAL MARKET
FKLI May month dropped 7.5 points or 0.49% to closed lower at 1535. The FBM KLCI ended lower on Monday, tracking a broadly weaker market, while the ringgit strengthened to a seven-month high.
Overnight Dow Jones dropped 98 points to closed lower at 41218. The S&P 500 slipped on Monday, ending its longest winning streak in two decades, as investors digested President Donald Trump’s surprise announcement of a 100% tariff on foreign-produced movies and looked ahead to the Federal Reserve’s upcoming policy decision.
The actively traded FKLI contract continues to show upward momentum, though it remains within a broader downward channel on the daily chart. In the previous session, it traded in a narrow range and faced resistance around the 1542–1545 level. We expect to see some downside bias due to potential technical correction, with immediate support identified at the 1534–1532 zone. A break below this level could lead to further downside toward the 1526–1524 area. However, if the support holds, it may present a buying opportunity. Beware of any potential sentiment changes. Immediate support and resistance levels are identified at 1537 and 1545, respectively.
(News Source: The Star; Reuters)
Recommend Trading Plan:
Long positions may be opened above 1541 with targets at 1545/1552 and stop-loss at 1535
Short positions may be opened below 1541 with targets at 1537/1531 and stop-loss at 1547
FCPO
FCPO Jul month dropped 54 points or 1.39% to closed lower at 3827. Malaysian palm oil futures fell for a fifth consecutive session on Monday, weighed down by a firm ringgit along with weakness in Chicago soyoil and crude oil prices.
CBOT soybean oil Jul month dropped 0.70 to closed lower at 48.73. The Dalian market will resume trading today following the Labour Day holiday break.
The actively traded FCPO contract remains below the 4080–4085 zone, the former bottom of a sideways consolidation, and continues to trend within a downward channel. After breaking the previous support at 3865–3860, prices moved lower and recently touched the channel support around 3785–3790, prompting a minor recovery. We maintain a "sell on rebound" strategy as the main plan. However, a short-term technical rebound is possible, with immediate resistance seen at 3805–3810. A break above this may lead to further upside towards 3834, potentially reaching 3855. If the resistance holds, selling pressure is likely to resume. Beware of any potential sentiment changes. The immediate support and resistance levels are pinpointed at 3787 and 3809, respectively.
(News Source: Reuters)
Recommend Trading Plan:
Long positions may be opened above 3809 with targets at 3834/3855 stop-loss at 3789
Short positions may be opened below 3809 with targets at 3787/3762 stop-loss at 3829
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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