The local stock index futures market (FKLI) is showing signs of recovery after successfully closing higher yesterday at 1,752.50 points.
This increase indicates that the buying momentum is still strong and the index has the potential to test the next resistance level at 1,790 points in the near future. The long-term trend is also seen to be stable as the index remains above the 50-day and 200-day moving averages.
On the other hand, the situation for the crude palm oil (FCPO) market is seen to be quite worrying for investors who are expecting a price increase. FCPO experienced a sharp drop of MYR45 to close at MYR4,393 yesterday.
This fall not only broke the important support level of MYR4,420, but also showed the dominance of sellers in the market.
Highlight
FKLI sentiment: Positive (Buying maintained).
FCPO sentiment: Negative (Sell maintained).
FKLI Resistance Level: 1,790 points.
FCPO Support Level: MYR4,300.
Trading Status: Remain Long for FKLI and Short for FCPO.
Technically, FKLI still has room to rise as long as it does not fall below the support level of 1,690 points. Meanwhile, for FCPO, the momentum indicator (RSI) shows that it is currently in a strong bearish zone, signaling that the price may continue to fall to test the next support level of MYR4,300.
FKLI Momentum: The index's ability to break through the 1,790 point resistance to confirm a higher uptrend.
FCPO Support Level: If the FCPO price fails to hold at MYR4,300, there is a risk that the price will fall to MYR4,200.
MA Line: The price movement relative to the 50-day moving average (MA) line will determine whether the current trend is still valid or has changed.
DISCLAIMER: All technical analysis shared here is for learning and educational purposes only. It is not investment advice or a “Buy/Sell” recommendation. Derivatives trading involves high risk. Please do your own research (DYOR) before making any financial decisions.
