FCPO Commentary on 07/05/09

FCPO 3rd month July Futures contract rebound RM55 higher to close at RM2680 as compare to previous trading session with 17,413 lots traded in the market. CPO price was traded higher slowly due to strong soybean oil and crude oil electronic trading manages to uphold against the selling pressure.

Technically, CPO price seem formed at rising diagonal in 5min price chart after bottomed around RM2603; 50% of Fibonacci projection levels. We expect CPO price still riding on the correction wave with critical resistance seen at RM2700 and RM2730 regions. Traders were advice to hold short position in the coming trading session provided resistance levels were not violated. Support levels were seen at RM2675 and RM2657 regions.