FCPO Commentary on 06/05/09

FCPO 3rd month July Futures contract plunge RM77 lower to close at RM2625 as compare to previous trading session with 15,238 lots traded in the market. Profit taking continues to take place as CPO price was not encourage by neither soybean oil and crude oil electronic trading nor overnight closing.

Technically, CPO price continue traded south after manage to rebound 50% Fibonacci figures at RM2724 regions. We expect CPO price would continue to trade south fiercely in the coming trading session provided resistance levels at RM2700 and RM2730 were not violated. Traders were advice to hold short position in the coming trading session while be extra cautious around support levels at RM2600 and RM2478 regions.