Dow Jones: 28,032.38 pts (+36.78pts, +0.13%)
⬆ Resistance:  29000
⬇ Support:  26900

FBM KLCI: 1,531.28 pts (+19.92pts, +1.32%)
⬆ Resistance:  1570
⬇ Support:  1450

HSI Index: 24,725.63 pts (-7.13pts, -0.03%)
⬆ Resistance:  25400
⬇ Support:  23900

Crude Palm Oil: RM2,909 (+RM45, +1.57%)
⬆ Resistance:  3010
⬇ Support:  2740

Brent Oil: $42.22 (+$1.69, +4.17%)
⬆ Resistance:  43.30
⬇ Support:  38.60

Gold: $1,959.26 (+$5.11, +0.26%)
⬆ Resistance:  2020
⬇ Support:  1900

M+ Online Technical Focus - 17Sep20
Plantation sector: Beyond RM2,900/MT

Trading Catalyst
• Crude palm oil prices (CPO) have now soared beyond RM2,900/MT level; the highest since January 2020 amid the improving demand prospects.
• The positive momentum is driven by the lingering trade spat between US and China which will see the latter shifting their purchases to CPO as opposed to soybean.
• On the local front, the export tax exemption since 1st June 2020 till end-2020 will drive price to be competitive at international levels.
• We reckon the demand will be sustainable, premised to the recent strings of better-than-expected economic data from China with palm oil shipments from Malaysia during the period 1-15 September 2020 rose 12.4% MoM to 780,305 tonnes.

Technical View

(i) KMLOONG (S: RM1.33, R: RM1.49-1.51, LT TP:RM1.64, CL:RM1.32)
(ii) SOP (S: RM3.37, R: RM3.97-4.21, LT TP:RM4.50, CL:RM3.36)

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

Source: Bloomberg, M+ Online

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