Review on last week’s markets

US, European & Asian market rallied overall this week as Trump & Macron fueled rally boosted investors sentiments. Emmanuel Macron won the first round of election last Sunday and will face far right candidate Marine Le Pen on May 7. Meanwhile President Trump proposal to cut US corporate tax from 35% to 15% lifted US equities, especially the S&P 500.

On the other hand, Asian markets closed slightly lower on Friday after comments by President Trump on US-Korea free trade agreements and also suggesting South Korea to pay for the THAAD missile defense system. The president also warned that a US-North Korea conflict is possible although prefer to to use diplomatic options to solve.

The Shanghai Composite Index fell by 0.6 percent, also fueled by investor concerns of government crackdown on speculations & risky investments. Overall yearly change for Shanghai Composite Index is + 6.72%. Japan's Nikkei 225 dropped slid 0.2 percent. Year to date change is at + 11.2%.

Closer to home, the KLCI rallied for the second straight week and posted a year to date change of + 4.47%, after struggling at +1% for in the first 3 months of the year.

Crude Oil ended the week at a 1-Year change of 8.56% while the USD index could be preparing for another strong rally due to coming FED interest rate decision on 4 May.

Events to watch out this week (Msia Time)

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.

2 May 2017, 9.45am, China Caixin Manufacturing PMI (Apr). The markets are expecting a 51.0 data. Expect some price volatility for Asian financial markets. Take good care of your trades.

4 May 2017, 2.00am US FED Interest Rate Decision. Market is forecasting a 1.00% interest rate. Expect some price volatility for S&P 500. Take good care of your trades.

5 May 2017, 8.30pm US unemployment Rate. Market is forecasting a 4.6% rate. Expect some price volatility for S&P 500. Take good care of your trades.

FKLI

FKLI had an uptrend but failed to break above 1,770-1,773 resistance. Based on this latest price action, I believe the smart monies is preparing for a short term retracement and hence FKLI retrace this week. First retracement target will be 1,762 while second retracement target is 1,755. Risk management is pegged at the 1,770-1,773 resistance zone. The overall longer term structure is still an uptrend based on EMA 8 EMA 13 golden cross.

FCPO

Throughout the last 4 trading days, FCPO formed a higher lows. With this latest price action, a support can be found around 2,500 zone. However it is still early to call for an uptrend. The market could be just trying to form a bottom. A medium term uptrend is triggered if EMA 8- EMA 13 forms a golden cross. If that happened, first uptrend target can be seen at 2,610 while second uptrend target is at 2,710. Support for risk management will be 2,500.

S&P 500

S&P 500 closed below 2,390 resistance throughout last week. Judging from the latest price action, I believe S&P 500 will start an uptrend only if prices breaks above the 2,390 resistance and EMA 8-EMA 13 remain in state of golden cross. Support for risk management will be 2,370 for the time being. It is not suitable to immediately use the 2,390 resistance so as to avoid being whipped out too soon. First uptrend target will be 2,410 while second uptrend target is at 2,460.

WTI

WTI last week closed the week at $49.14 per barrel. There is a formation of a pin bar on Thursday and this confluences with the $48.8 support zone. In fact there throughout last week above of daily lows were just above this zone. Going forward, with this formation, I believe WTI will trade between $48.8 & $50. A strong uptrend will only happen if prices above $50 support and EMA 8 and EMA 13 forms a golden cross. First uptrend target will be $51 while second uptrend target is at $52. Risk management zone will be the $48.8 support.

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.

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