FCPO Commentary on 05/05/09

FCPO 3rd month July Futures contract surge RM107 higher to close at RM2702 as compare to previous trading session with 19,894 lots traded in the market. Heavy profit taking activities come in place as CPO price fails to reach RM2800 psychology levels.

Technically, CPO price seems topped around 478.6% Fibonacci projection levels at RM2783 regions. We expect heavy profit taking activities would come in place after CPO price fails to breach 478.6% resistance levels at RM 2783 regions. Traders were advice to hold short position in the coming trading session as immediate support seen at RM 2581 and RM2450; 23.6% and 38.1% Fibonacci figure in order to cover the trading gap. Resistances were seen at RM2750 and RM2780 regions.