FCPO Commentary on 27/04/09

FCPO 3rd month July Futures contract rise marginally RM5 higher to close at RM2585 as compare to previous trading session with 13,981 lots traded in the market. CPO price was traded higher during trading session as crude oil and soybean oil electronic trading were traded strong which lead domino effect on CPO price trading.

Technically, CPO surge higher after consolidate around RM2540 and RM2560 range in the morning trading session but encounter great selling pressure around 138.1% Fibonacci projection at RM2633 regions. We expect CPO price still riding on the bull trend provided support levels at RM2535 and RM2322 were not violated during trading session. Traders were advice to hold long position around the support levels while be extra alert around resistance levels at RM 2632 and RM2708 regions.