FCPO Commentary on 15/05/09

FCPO 3rd month July Futures contract plunge RM105 higher to close at RM2684 as compare to previous trading session with 10,126 lots traded in the market. CPO price was traded lower as soybean oil and crude oil overnight and electronic trading plunge during trading session.

Technically, CPO seems complete 361.8% Fibonacci projection at RM2797 region while minor wave seems complete at 161.8% Fibonacci projection. We suggestion CPO price is considered trend reversal based on wave count for medium term basis provided resistance levels at RM2798 and RM2754 must not be violated. Traders were advice to hold short position in the coming trading session while be extra alert around support levels at RM2655 and RM2600 regions.