Review on last week’s markets

President Trump & majority of the Republican party lost the legislative battle to replace the Affordable Care Act (Obamacare) last week. The US markets since then failed to stage any rallies. As of Friday 5:18pm Msia Time, both DOW & S&P500 failed to achieved any record high since the 1st trading day of March.

Meanwhile, closer to home, Asian stocks fell red on Friday. The Nikkei 225 lost 138pts and Hang Seng Index lost 0.6% as of closing. Only the Shanghai Composite bucked the trend with a 12pt gain. Malaysia's benchmark equity index, KLCI lost 9.06 point to close at 1,740.09.

Events to watch out this week (Msia Time)

3 April, 9.45am, China Caixin Manufacturing PMI (for March).

5 April, 10:30pm, Weekly US Crude Oil Inventories. Last week figures was 0.867 million barrels. Expect some price volatility for WTI Crude Oil. Take good care of your trades.

6 April 2am, FOMC Meeting Minutes. The Federal Open Market Committee (FOMC) Meeting Minutes are a detailed record of the committee's policy-setting meeting held about two weeks earlier. The minutes offer detailed insights regarding the FOMC's stance on monetary policy. Expect some price volatility for S&P 500. Take good care of your trades.

7 April 8.30pm, US Unemployment rate. The Unemployment Rate measures the percentage of the total work force that is unemployed and actively seeking employment during the previous month. Market is expecting a 4.7% rate. Expect some price volatility for S&P 500. Take good care of your trades.

Every 10th biz day of month (10 April), Malaysia Palm Oil Board's Palm Oil stocks data. Expect some price volatility for FCPO. Take good care of your trades.

Every 10th, 15th, 20th, 25th and last biz day of month (10 April), ITS & SGS Palm Oil export data. Expect some price volatility for FCPO. Take good care of your trades.

FKLI

FKLI closed lower for 3 consecutive days and ended the week at 1,744.5. In addition, the index futures formed a double top pattern. Feel free to checkout our double top article for tips. Based on this price action, I believe FKLI will resume its downtrend for the week ahead with risk management zone at 1,750. Why 1,750 zone is selected because a break above this zone signals FKLI may start uptrend and invalidate my downtrend analysis. First downtrend target will be 1,735. Shall prices able to break 1,735 and EMA 8-13 forms a deadly cross, I believe the index will then drop towards 1,726 second target.

FCPO

For the second week in running, FCPO did resume its downtrend, as correctly anticipated in our last week's outlook. The benchmark crude palm oil prices ended the week at 2,647. Going forward, I believe FCPO will again resume its downtrend next week, as long as EMA 8 -13 remained deadly cross and prices below 2,685 resistance zone. Thus 2,685 will also be our risk management. First downtrend target will be 2,600 while second downtrend target at 2,550.

S&P 500

As correctly warned for the past 2 weeks, the S&P 500 did resume its healthy retracement and subsequently downtrend. Feel free to click 20-24 march and last week's outlooks for a quick recap on my initial analysis. Prices almost hit last week's second downtrend target 2,317. Going forward, I believe S&P 500 will resume its downtrend next week. This is because EMA8-13 still in a deadly cross mode and also each price swings created lower highs in the day chart. First downtrend target is 2,330 while second downtrend target is 2,315. Risk management will be 2,370.

WTI

Based on latest price action, I believe WTI Crude Oil may resume its uptrend next week. Especially when EMA 8-13 forms a golden cross and prices above $50. First uptrend target is $51 while second uptrend target will be $52. Risk management is the $49. This is because if prices below $49, it may spark further selloff.

DISCLAIMER

The information contained in this article is for reference only. No individual financial goals & risk appetite have been taken into account. Futures trading involve high risks.