FCPO Commentary on 26/05/09

FCPO 3rd month August Futures contract plunge RM76 lower to close at RM2445 as compare to previous trading session with 8,977 lots traded in the market. CPO price plunge soon before trading session was closed after long consolidation around RM2500 and RM2520 region as crude oil electronic trading plunge during the trading session.

Technically, CPO price seems to break down from previous low at RM2480 region to close at RM2445 levels; reach 78.6% Fibonacci projection levels. We suggest CPO might rebound soon in the coming trading session as MACD show mild bull divergence was seen in the hourly chart. However, traders were still suggests to hold short position around the resistance level at RM2530 and RM2660 in the coming trading session as medium term still favors to downtrend while be be extra cautious around support levels at RM2440 and RM2378 regions.