Tuesday, July 22, 2025

23 Jul 2025 BMD Local Market

LOCAL MARKET 

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FKLI
FKLI Jul month dropped 5.5 points or 0.36% to closed lower at 1519.5. The FBM KLCI gave up early gains to end lower for the second straight day on Tuesday, weighed down by cautious sentiment and the absence of fresh catalysts.

The Dow Jones index rose 179 points to closed higher at 44502 on previous session. The Dow advanced while the Nasdaq slipped on Tuesday, and crude prices ended lower as investors weighed a mix of corporate earnings and growing signs that President Donald Trump's prolonged trade war is pressuring profit margins — all as his self-imposed dealmaking deadline loomed.

The actively traded FKLI contract remains within a broader downward channel. On the hourly chart, the index recently saw technical buying interest after testing the support zone at 1,500–1,502. However, it faced resistance around the 1,527–1,530 range. We maintain a downside bias, with a sell-on-rebound strategy in focus. A rebound toward the 1,521–1,523 range may offer selling opportunities. If the index breaks above this zone, market sentiment could shift to a more positive tone. On the downside, support is seen at 1,516–1,517. A break below this level may trigger further selling pressure, with the next support located at 1,512–1,514. Beware of any potential sentiment changes. Immediate support and resistance levels are identified at 1517 and 1523, respectively.

(News Source: The Star, Reuters)


Recommend Trading Plan:

Long positions may be opened above 1517 with targets at 1523/1528 and stop-loss at 1512

Short positions may be opened below 1517 with targets at 1512/1508 and stop-loss at 1522


FCPO
FCPO Oct month rose 39 points or 0.92% to closed higher at 4225. Malaysian palm oil futures closed higher on Tuesday, though market volatility persisted amid uncertainty surrounding potential trade agreements between major Asian nations and the United States.

CBOT soyoil active traded contract dropped 0.43 points to closed lower at 55.39 on previous session. Dalian’s active palm oil contract rose 26 points to close higher at 8954 on previous night session.

The actively traded FCPO contract continues to trend within an upward channel on the daily chart. On the hourly chart, the price is hovering just above the support line of the channel at 4,220–4,225, with consolidation showing an upward bias and a gradually narrowing range.

Immediate resistance is seen at 4,250–4,255. A firm break above this level could lead to further upside toward 4,275, and potentially extend to the 4,295–4,300 zone. However, failure to break above resistance may trigger some selling pressure. That said, any downside is expected to be limited as long as the key support at 4,205–4,210 holds—maintaining the bullish outlook. Beware of any potential sentiment changes. The immediate support and resistance levels are pinpointed at 4229 and 4253, respectively.

(News Source: Reuters)


Recommend Trading Plan:

Long positions may be opened above 4253 with targets at 4275/4297 stop-loss at 4233

Short positions may be opened below 4253 with targets at 4229/4205 stop-loss at 4233


Disclaimer: This information is intended to assist professional investors. News are credit courtesy of Reuters, Nasdaq.com, Bloomberg, CNN, Market Watch, FT.com, the Star online, forbes.com, mining.com and CNBC. The information does not constitute investment advice or an offer to invest or to provide management services and is subject to correction, completion and amendment without notice. As with all investments, there are associated risks and you could lose money investing. Prior to making any investment, a prospective investor should consult with its own investment, accounting, legal and tax advisers to evaluate independently the risks, consequences and suitability of the investment.

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