FCPO Commentary on 22/05/09

FCPO 3rd month August Futures contract plunge RM103 lower to close at RM2499 as compare to previous trading session with 14,260 lots traded in the market. CPO price plunge throughout the entire trading session due to soybean oil and crude oil electronic trading despite were close firm during overnight trading.

Technically, CPO price continue to plunge as per our previous recommendation after fails to hold above previous support at RM2600 region. However, we expect CPO price might be temporary bottomed unless support levels at RM2466 and RM2440 were violated in the coming trading session. Traders were advice to take profit provided resistance levels at RM2555 and RM2602 were breach in the coming trading session.