FCPO Commentary on 01/06/09

FCPO 3rd month August Futures contract surge RM47 to close at RM2552 levels as compare to previous trading session with 10,326 lots traded in the market. CPO price traded higher in the previous trading session but fall back before market about to close due to some holiday profit taking activities.

Technically, CPO price seems temporary topped around resistance area at RM2575 region; 50% Fibonacci retrace from low at RM2350 levels. Based on our technical studies, our opinion suggest that CPO price might encounter great selling pressure around resistance area at RM2575, RM2627 and RM2702 region. Traders were advice to hold short position on next rebound provided resistance levels were not violated while confirmation of selling pressure when support levels at RM2525 and RM2462 region. Short term support seen at RM2550 and RM2538.