FCPO Commentary on 18/05/09

FCPO 3rd month July Futures contract fall RM21 lower to close at RM2663 as compare to previous trading session with 8,551 lots traded in the market. CPO price continue to plunge despite was opened strong due to soybean oil and crude oil firm overnight closing.

Technically, CPO price continue to plunge after manage to rebound 61.8% Fibonacci retrace levels at RM2755 regions in the 15 min chart. We expect CPO price would trade lower in the coming trading session towards support levels seen at RM2600 and RM2553 regions. Traders were advice to hold short position in the coming trading session while be alert around resistance levels at RM2710 and RM2684 regions.