Dow Jones: 26,289.98 pts (+526.82pts, +2.04%)
⬆ Resistance:  28000
⬇ Support:  24400

FBM KLCI: 1,517.71 pts (+18.88pts, +1.26%)
⬆ Resistance:  1620
⬇ Support:  1470

Crude Palm Oil: RM2,356 (+RM63, +2.75%)
⬆ Resistance:  2470
⬇ Support:  2250

Brent Oil: $40.96 (+$1.24, +3.08%)
⬆ Resistance:  42.9
⬇ Support:  36.3

Gold: $1,726.53 (+$1.37, +0.08%)
⬆ Resistance:  1780
⬇ Support:  1680

M+ Online Technical Focus - 17 Jun 20
Energy sector: Production Curb Extension Booster

Trading Catalyst
• In the latest OPEC meeting, OPEC and its allies have collectively agreed to extend a production cut by 9.7m barrels of oil/day till end-July 2020.
• The move is part of the pact’s strategy to stabilise the crude oil prices which demand has been negatively impacted by the Covid-19.
• We reckon that the move which accounts to approximately 10% of world’s total production bodes well for oil & gas players, capitalising on the recent recovery with Brent oil prices hovering around the US$40 per barrel.
• Therefore, we expect oil & gas companies to garner firmer trading interest over the near term.

Technical View

(i) HIBISCS (S: RM0.575, R: RM0.72-0.79, LT TP:RM0.88, CL:RM0.57)
(ii) UZMA (S: RM0.55, R: RM0.695-0.755, LT TP:RM0.805, CL:RM0.54)

S: Support, R: Resistance, LT TP: Long term target price, CL: Cut loss

Source: Bloomberg, M+ Online

Disclaimer

The content published is solely for information and personal use only. It should not be construed to be, any advice, recommendation, offer or invitation to buy or sell any securities, futures contracts or any other instrument. Readers should seek independent advice from their own professional advisers (including legal, tax, financial and accounting) as to the risks and merits before entering into any transaction pursuant to or in reliance on any information here.

The content published above shall only be for your sole and personal non-professional use. No guarantee is given on the accuracy or completeness of the information published here. No warranty whatsoever is given and no liability whatsoever is accepted for any loss arising whether directly or indirectly as a result of any person or group of persons acting on such information.