LOCAL MARKET
FKLI June month rose 13 points or 0.86% to closed higher at 1518.5. Bursa Malaysia closed higher for a second straight day, supported by continued bargain hunting following last week’s sell-off, in line with positive sentiment across regional markets.
Overnight Dow Jones dropped 108 points to closed lower at 42319. Wall Street closed lower on Thursday in choppy trading, as a sharp decline in Tesla shares outweighed optimism from reported progress in tariff talks between U.S. President Donald Trump and Chinese President Xi Jinping.
The actively traded FKLI contract, on the daily chart, is currently trading around the mid-point of a broad downward channel. After facing selling pressure from May 15 to June 3, the price found support around the 1,498–1,497 zone, signaling potential upward bias on technical buying. At this stage, a sideways consolidation may develop, with immediate support seen at 1,505–1,504. If this range holds, buying could continue. However, if it breaks below, further selling pressure may drive the index toward 1,500 or even lower. Beware of any potential sentiment changes. Immediate support and resistance levels are identified at 1509 and 1514, respectively.
(News Source: The Malaysia Reserve, Reuters)
Long positions may be opened above 1509 with targets at 1514/1520 and stop-loss at 1504
Short positions may be opened below 1509 with targets at 1504/1498 and stop-loss at 1514
FCPO
FCPO Aug month dropped 45 points or 1.14% to closed lower at 3903. Malaysian palm oil futures fell on Thursday, ending a two-day winning streak, as traders took profits and weakness in rival edible oils weighed on sentiment.
The CBOT Soyoil active traded contract dropped 0.16 to close lower at 46.65 on previous session. Dalian’s active palm oil contract rose 52 points to close higher at 8158 on previous night session.
The actively traded FCPO contract remains within a broad sideways consolidation range, with support at 3,790–3,785 and resistance at 3,975–3,970. On the hourly chart, the price is currently trading in the upper part of the range, staying above the key support zone of 3,900–3,895. If this level continues to hold, the price may push higher toward 3,943 or even retest the 3,966 zone. However, a break below the support could trigger selling pressure, potentially dragging the price down to the 3,870–3,865 area. Beware of any potential sentiment changes. The immediate support and resistance levels are pinpointed at 3921 and 3943, respectively.
(News Source: Reuters)