LOCAL MARKET
FKLI May month dropped 4 points or 0.26% to closed lower at 1531. The FBM KLCI fell for a second straight session, weighed down by cautious investor sentiment and a weaker broader market.
Overnight Dow Jones dropped 389 points to closed lower at 40829. U.S. stock futures edged higher late Tuesday following news that Treasury Secretary Scott Bessent and U.S. Trade Representative Jamieson Greer are set to meet with China's top economic official in Switzerland later this week.
The actively traded FKLI contract continues to show an overall upside bias in the broader trend. However, on the hourly chart, the index is moving with a slight downward bias, which we view as part of a technical pullback. Key support is seen at the 1526–1524 range — if this zone holds, it may offer a buying opportunity with potential rebound toward the 1540–1545 range. However, failure to hold this support could lead to further downside correction. Beware of any potential sentiment changes. Immediate support and resistance levels are identified at 1526 and 1536, respectively.
(News Source: The Star; Reuters)
Long positions may be opened above 1531 with targets at 1536/1542 and stop-loss at 1526
Short positions may be opened below 1531 with targets at 1526/1521 and stop-loss at 1536
FCPO
FCPO Jul month dropped 35 points or 0.91% to closed lower at 3792. Malaysian palm oil futures gave up earlier gains on Tuesday, marking a sixth consecutive session of losses, pressured by weakness in rival oils on the Dalian and Chicago markets. Meanwhile, market attention has turned to May’s production outlook.
CBOT soybean oil Jul month dropped 0.38 to closed lower at 48.35. Dalian’s active palm oil contract dropped 72 points to close lower at 7912 on previous night session
The actively traded FCPO contract continues to trade within a broader downward channel after breaking below the 4080–4085 region, maintaining a bearish outlook. On the hourly chart, prices have extended their decline and are now facing resistance around the 3760–3765 zone. Any rebound toward this level may present a selling opportunity. However, a breakout above this resistance could trigger limited technical buying, with upside potential capped near the 3800–3805 range. Beware of any potential sentiment changes. The immediate support and resistance levels are pinpointed at 3746 and 3762, respectively.
(News Source: Reuters)