Dow Jones: 25,871.46 pts (-208.64pts, -0.80%)
⬆ Resistance:  27200
⬇ Support:  24400

FBM KLCI: 1,507.26 pts (+2.35pts, +0.16%)
⬆ Resistance:  1580
⬇ Support:  1470

Crude Palm Oil: RM2,472 (+RM105, +4.44%)
⬆ Resistance:  2530
⬇ Support:  2250

Brent Oil: $42.19 (+$0.68, +1.64%)
⬆ Resistance:  43.8
⬇ Support:  36.5

Gold: $1,743.87 (-$4.02, -0.24%)
⬆ Resistance:  1790
⬇ Support:  1680

M+ Online Technical Focus - 22 Jun 20
Plantation sector: Recovery in demand complements resumption in production

Trading Catalyst
• Crude palm oil prices has surged above the RM2,400 per tonne level; the highest in three months on prospects of improving demand amid the lower stocks from major importers like China and India. 
• The latter will import 1.1m tonnes of vegetable oil in June 2020 and aims to boost the figure to 1.3m tonnes from July 2020.
• We see demand to be boosted by the government’s effort under PENJANA to implement 100.0% exemption on export duty on crude palm oil, crude palm kernel oil and processed palm kernel oil from 1st July 2020 to 31st December 2020. 
• Resumption of work activities under the CMCO may also ensure sufficient supplies to meet the improving demand.

Technical View

(i) TSH (S: RM0.8, R: RM0.93-1, LT TP:RM1.1, CL:RM0.795)
(i) SOP (S: RM2.91, R: RM3.44-3.7, LT TP:RM4.22, CL:RM2.9)

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

Source: Bloomberg, M+ Online

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