FCPO Commentary on 19/05/09

FCPO 3rd month August Futures contract fall RM42 lower to close at RM2570 as compare to previous trading session with 13,778 lots traded in the market. CPO price rebound during trading session as soybean oil and crude oil electronic were traded firm despite plunge on the previous trading session.

Technically, CPO price seems resisted by 80 – day and 100 – day exponential moving average in the 5 minutes charts at RM2605 region; 38.1% Fibonacci rebound levels. We expect CPO price would trade lower in the coming trading session provided resistance levels at RM2605 and RM2635 regions were not violated. Traders were advice to hold short position in the coming trading session while be cautious around support levels at RM2520 and RM2460 regions.