FCPO Commentary on 17/04/09

FCPO 3rd month June Futures contract fall RM40 lower to close at RM2358 as compare to previous trading session with 10,403 lots traded in the market. CPO price were opened higher during trading session due to firm overnight soybean oil and crude oil trading were closed firm despite CPO encounter great selling pressure during trading hours.

Technically, CPO price break down from previous support levels at RM2440 region after formed at shooting star in the daily chart. We expect CPO price would trade lower in the coming trading session with support levels seen at RM2330 and RM2308 region. Failure to breach support levels shall indicate rebound activities after dropped for 2 consecutive days. Traders were advice to hold short position once the support levels were violated while resistance levels seen at RM2397 and RM2424 regions.