FCPO Commentary on 27/05/09

FCPO 3rd month August Futures contract plunge RM15 lower to close at RM2430 as compare to previous trading session with 13,971 lots traded in the market. CPO price plunge during trading session as soybean oil and crude oil electronic trading were traded lower during intraday trading session.

Technically, CPO price seems to temporary holding above support levels at RM2340 and RM2380 regions. Our opinion suggests that CPO price might be rebound in the coming trading session with potential resistance seen at RM2520 and RM2573 regions. Traders were advice to hold long position in the coming trading session for short term trading while be aware of support levels at RM2380 and RM2330 regions. Overall, CPO price was seen still riding on a bear trend for medium term trading.