FCPO Commentary on 20/05/09

FCPO 3rd month August Futures contract surge RM60 higher to close at RM2630 as compare to previous trading session with 11,204 lots traded in the market. CPO price was traded higher due to strong soybean oil and crude oil strong trading.

Technically, CPO price seems rebound 61.8% Fibonacci retrace levels at RM2650 regions. We expect CPO price would trade lower in the coming trading session provided resistance levels at RM2650 and RM2684 must not be violated. Traders were advice to hold short position in the coming trading session while be cautious around support levels at RM2600 and RM520 regions.