LOCAL MARKET
FKLI June month rose 9.5 points or 0.63% to closed higher at 1516. Bursa Malaysia ended the trading day in positive territory on Monday, supported by investor accumulation in selected heavyweight stocks, as market participants awaited the outcome of high-level US-China talks.
Overnight Dow Jones declined 1 point to closed almost flat at 42761. Global stocks advanced on Monday, while the U.S. dollar weakened, as the United States and China began talks in London aimed at easing tensions in their ongoing trade dispute. The conflict, which has escalated beyond tariff exchanges to include restrictions on rare earth elements, poses risks to global supply chains and could hamper worldwide economic growth.
The actively traded FKLI contract is currently trading near the midpoint of a broad downward channel on the daily chart. After enduring consistent selling pressure from May 15 to June 3, the index found support around the 1,498–1,497 zone, suggesting potential for a technical rebound.
On the hourly chart, the index is encountering resistance around the 1,520–1,521 range, with price action now moving sideways. Immediate support is identified at the 1,510–1,511 zone. Holding above this level could offer a short-term buying opportunity, while a breakdown below it may trigger further selling pressure toward the 1,504–1,505 region. Beware of any potential sentiment changes. Immediate support and resistance levels are identified at 1511 and 1516, respectively.
(News Source: NST; Reuters)
Recommend Trading Plan:
Long positions may be opened above 1511 with targets at 1516/1521 and stop-loss at 1506
Short positions may be opened below 1511 with targets at 1505/1499 and stop-loss at 1516
FCPO
FCPO Aug month rose 8 points 0.20% to closed moderately higher at 3925. Malaysian palm oil futures climbed on Monday, following gains in rival vegetable oils on the Dalian and Chicago exchanges, as traders looked ahead to upcoming Malaysian palm oil data for further direction.
The CBOT Soyoil active traded contract dropped 0.12 to close lower at 47.38 on previous session. Dalian’s active palm oil contract rose 12 points to close slightly higher at 8166 on previous night session.
The actively traded FCPO contract remains within a sideways consolidation range on the broader view, with key support levels at 3,790–3,785 and resistance between 3,975–3,970. On the daily chart, prices are currently hovering near the upper boundary of this range, with overall movement staying neutral and the sideways trend still intact. Immediate support is seen at the 3,885–3,890 zone, while resistance is noted at 3,930–3,940. A breakout above this resistance could lead prices toward 3,956 or even higher at 3,980. However, failure to break above the resistant zone may trigger renewed selling pressure back to support range at 3885 to 3890. Beware of any potential sentiment changes. The immediate support and resistance levels are pinpointed at 3907 and 3931, respectively.
(News Source: Reuters)
Recommend Trading Plan:
Long positions may be opened above 3931 with targets at 3956/3980 stop-loss at 3911
Short positions may be opened below 3931 with targets at 3907/3884 stop-loss at 3951