FCPO Commentary on 20/04/09

FCPO 3rd month June Futures contract rebound RM77 lower to close at RM2435 as compare to previous trading session with 11,054 lots traded in the market. CPO price was opened lower but traded higher since opening due firm soybean oil and crude oil electronic trading.

Technically, CPO starts to rebound after complete wave 5 projection at RM2330 region despite we expect CPO price would test RM2310 support regions. We expect CPO price would trade lower in the coming trading session provided resistance levels at RM2440 and RM2473 were not violated. Traders were advice to hold short position in the coming trading session while support levels were seen at RM2400 and RM2310 regions.