FCPO Commentary on 08/04/09

FCPO 3rd month June Futures contract fall RM15 lower to close at RM2165 as compare to previous trading session with 7502 lots traded in the market. CPO price was mainly traded sideways for entire trading session despite crude oil and soybean oil electronic trading plunge during trading session.

Technically, CPO price seems forms a Bear Harami in the daily chart. It’s a candlestick bear reversal signal where only confirm complete after support levels at RM2121 and RM2153 were violated. We expect CPO price would lower provided support levels were violated. Traders were advice to hold short position once support levels were breach while place tight stop loss around resistances levels at RM2200 and RM2200 regions.