LOCAL MARKET
FKLI June month dropped 24 point or 1.58% to closed lower at 1496. Despite a broad rally across regional markets following a U.S. trade court’s decision to block President Donald Trump’s sweeping tariffs, the FBM KLCI extended its decline, closing in the red for the fourth straight session on Friday.
Overnight Dow Jones rose 35 points to closed moderately higher at 42305. Wall Street closed higher on Monday after a volatile session, while the dollar weakened amid escalating trade tensions between Washington and Beijing. Investors remained cautious ahead of upcoming U.S. employment data and a widely anticipated interest rate cut by the European Central Bank.
The market continues to exhibit bearish momentum, with a 'sell-on-rebound' strategy remaining the preferred approach. Some technical buying may emerge after the recent sell-off, with potential rebound resistance seen around the 1,511–1,512 zone, which could offer a selling opportunity. Immediate resistance is noted at 1,506–1,507; a decisive break above this level may lift the index toward 1,512 or higher. However, failure to break above this resistance could trigger renewed selling pressure. Beware of any potential sentiment changes. Immediate support and resistance levels are identified at 1503 and 1507, respectively.
(News Source: The Star; Reuters)
Recommend Trading Plan:
Long positions may be opened above 1507 with targets at 1512/1518 and stop-loss at 1502
Short positions may be opened below 1507 with targets at 1503/1497 and stop-loss at 1512
FCPO
FCPO Aug month dropped 54 points or 1.37% to closed lower at 3878. Malaysian palm oil futures ended lower on Friday, halting a five-day winning streak, pressured by weakness in the soybean oil market.
The CBOT Soyoil active traded contract dropped 0.61 to close lower at 46.28 on previous session. Dalian’s active palm oil contract dropped 4 points to close slightly lower at 8068 on previous night session.
The actively traded FCPO contract is currently hovering in a sideways consolidation pattern after recently breaking above the 3,865–3,870 zone, which now acts as both the mid-range level and a key support line. If prices hold above this area, we may see a rebound toward the upper range at 3,886–3,911. However, a break below this support could trigger further selling pressure, potentially driving prices down to 3,839 and possibly extending to the lower boundary near 3,818 Beware of any potential sentiment changes. The immediate support and resistance levels are pinpointed at 3864 and 3886, respectively.
(News Source: Reuters)
Recommend Trading Plan:
Long positions may be opened above 3864 with targets at 3886/3911 stop-loss at 3844
Short positions may be opened below 3864 with targets at 3839/3818 stop-loss at 3884