LOCAL MARKET
FKLI June month dropped 12 points or 0.79% to closed lower at 1506.5. Bursa Malaysia closed the week slightly lower on last Friday, following the weak performance across regional markets, especially among emerging economies.
Overnight Dow Jones rose 443 points to closed higher at 42762. U.S. stocks ended higher on Friday after a stronger-than-expected jobs report eased concerns about the economic outlook. Tesla rebounded, recovering some ground following a steep decline in the previous session. The S&P 500 closed above the 6,000 mark for the first time since February 21, driven by gains in technology stocks.
The actively traded FKLI contract is currently trading near the midpoint of a broad downward channel on the daily chart. After encountering consistent selling pressure from May 15 to June 3, the index found support around the 1,498–1,497 level, suggesting potential for a technical rebound. On the hourly chart, a minor upward channel has formed, with the index showing support around the 1,505–1,507 zone. If the 1,515–1,516 range holds firmly, the index may continue its upward bias, potentially testing 1,521 and possibly extending gains toward the 1,526 level. Else, if the 1,515–1,516 range fails to hold, the index is likely to face renewed selling pressure from that zone. Beware of any potential sentiment changes. Immediate support and resistance levels are identified at 1510 and 1516, respectively.
(News Source: NST; Reuters)
Long positions may be opened above 1516 with targets at 1521/1526 and stop-loss at 1511
Short positions may be opened below 1516 with targets at 1510/1504 and stop-loss at 1521
FCPO
FCPO Aug month rose 14 points 0.36% to closed higher at 3917. Malaysian palm oil futures settled higher on Friday, reversing midday losses to log a fourth consecutive weekly gain, despite concerns over rising production and inventories.
The CBOT Soyoil active traded contract rose 0.85 to close higher at 47.50 on previous session. Dalian’s active palm oil contract rose 5 points to close slightly higher at 8130 on previous night session.
The actively traded FCPO contract continues to trade within a sideways consolidation range on the broader view. Key support levels are seen at 3,790–3,785, while resistance lies between 3,975–3,970. On the daily chart, prices are hovering near the upper boundary of this range. Immediate support is observed at the 3,885–3,880 area. Since the end of May, the price has repeatedly attempted to break above the range top but failed, forming lower highs and showing signs of a downside bias.
We anticipate a “sell on rebound” strategy, as technical rebounds toward the 3,935–3,940 resistance zone may offer selling opportunities. The expected downside target is the immediate support area of 3,885–3,880, with a possible extension to the 3,860 level. However, if prices rebound and hold above the resistance zone, traders may consider switching to a positive outlook. Beware of any potential sentiment changes. The immediate support and resistance levels are pinpointed at 3913 and 3935, respectively.
(News Source: Reuters)