FCPO looks ugly

The recent low at 3027 was violated and market close with a long black candle. The earlier gains had completely swept off. We now looking at support at 2838-2840. Resistance is at 3150-3160.

Trader's comment: CPO futures surrendered all early gains!!

CPO futures surrendered all early gains to finish broadly lower as intra-day long liquidation activities emerged after earlier gains were not able to sustain. Benchmark Oct08 prices rallied to hit intra-day high at 3162 on the back of higher soyoil prices in e-CBOT and firmer crude oil prices in Asian trading timezone. However, prices began to lose ground after it failed to sustain at the higher end due to lack of follow through. Then, market was under selling pressure till the end of the session. It slammed down to settle RM69 lower at 3001.

FKLI double digit up

Downtrend line was violated completely and prices continue to march higher. Market may want to challenge the resistance at 1159 followed by 1175.5-1182.5 (gap left over on 30 Jun-1 Jul, 2008). While, support is at 1136.5-1135 (gap left over today).

KLSE violated downtrend line

KLSE violated the downtrend line and covered full gap left over on 3-4 Jul, 2008 at 1138.03-1153.33. Market may continue to move sideways to higher in near term. Resistance and support is at 1187.67 and 1116.14-1112.51 (gap left over on 22-23 Jul, 2008) respectively.

FCPO eyeing gap

FCPO recover from last Friday losses and may want to challenge the gap left over on 23 Jul, 2008 at 3211-3245. While, support is at 3112-3088 (gap left over on this morning).

FKLI inching higher on firmer underline support

Firmer underline support at 1119-1120 had attracted more buying support and saw prices penetrated the recent high at 1148.5 on 24 Jul. Market may want to challenge the next resistance at 1158.5-1159 followed by 1175.5-1186 (gap left over over 1 Jul-30 Jun, 2008). For downside, support is at 1136.5-1135 (gap left over this morning).

KLSE violated the recent high at 1153.30

Recent high at 1153.30 on 11 Jul, 2008 was violated this morning. Market may want to challenge the next resistance at 1155.52 followed by 1188.18. While, support is pegged at 1141.85-1139.92 (gap left over this morning).

Breaking News-RTRS-Malaysia to counter falling palm oil prices-paper

KUALA LUMPUR, July 27 (Reuters) - Malaysia will take urgent measures to counter the recent slide in international crude palm oil prices and ensure that it does not become a long-term trend, Commodities Minister Peter Chin was quoted as saying on Sunday.

Chin said the government would lower the current stock of crude palm oil in Malaysia by exporting it to countries such as India, Pakistan, China and the Middle East instead of exporting refined palm oil, while increasing exports in winter to the western countries where it could be used as bio-fuel.

Other measures include increasing the usage of crude palm oil for bio-fuel production, encouraging local power producers to use crude palm oil as raw material, and having more industries use the commodity as feedstock fuel, instead of diesel, he said.

Trader's Highlight

DJI-NEW YORK, July 25 (Reuters) - U.S. stocks rose on Friday as a drop in oil prices, and stronger-than-expected data on consumer sentiment and housing blunted the latest concerns about the health of U.S banks.The Dow Jones industrial average <.DJI> rose 21.41 points, or 0.19 percent, to 11,370.69. The Standard & Poor's 500 Index <.SPX> added 5.22 points, or 0.42 percent, to 1,257.76, while the Nasdaq Composite Index <.IXIC> jumped 30.42 points, or 1.33 percent, to 2,310.53.

NYMEX-NEW YORK, July 25 (Reuters) - U.S. crude oil futures ended lower on Friday, hitting seven-week lows as the dollar rose on upbeat economic data and as an industry consultant forecast higher OPEC oil output this month.On the New York Mercantile Exchange, September crude settled down $2.23, or 1.78 percent, at $123.26 a barrel.

CBOT-SOYBEANS - Up 5 to 15 cents per bushel, with August up 13-3/4 at $13.98-3/4 per bushel.Turns higher when wheat soars. Technical gains amid oversold signals and concerns about possible hotter U.S. weather in August when soy sets pods boosted prices.

SOYOIL - Up 0.10 to 0.25 cent per lb, with August up 0.24 at 59.17 cents per lb. Spillover support from gains in soy.

FCPO-KUALA LUMPUR, July 25 (Reuters) - Malaysian crude palm oil futures fell on Friday as players took profit despite news of higher July 1-25 palm oil exports.The benchmark October contract on the Bursa Malaysia Derivatives Exchange closed down 43 ringgit, or 1.4 percent, at 3,070 ringgit ($944.9) a tonne. An immediate support was pegged at 3,000 ringgit.

REGIONAL EQUITIES-Most Southeast Asian stock markets slipped on Friday following a negative prognosis for economic growth, but were mostly higher on week thanks to a
pullback in crude oil prices.

Indonesian <.JKSE> and Philippine shares <.PSI> outperformed the region this week to gain 4.9 and 5.2 percent respectively over last week, but Jakarta was down half a percent on Friday.
The Philippine index gave up 0.9 percent on Friday.Malaysia <.KLSE> finished flat on the day and rose 3.3 percent for the week, while Singapore <.FTSTI> fell 1.9 percent on Friday but rose 2.6 percent this week on financials and property.

DJI Weekly: Firm support at 10827.71

DJI slowly recover from earlier losses and support at 1082.71 was quite firm to hold. Market may consolidate in near term. We look for the resistance and support at 11924.19 and 10827.71 level respectively in near term.