FCPO Commentary on 28/05/09

FCPO 3rd month August Futures contract surge RM75 lower to close at RM2505 as compare to previous trading session with 13,218 lots traded in the market. CPO price was traded north throughout entire trading session as soybean oil and crude oil electronic trading was traded strong while stay firm during overnight trading despite CPO price plunge during previous trading session.

Technically, CPO price might seem temporary topped around RM2505 regions as its 38.1% Fibonacci projection level. Our technical analyst suggests us that CPO price might be temporary topped around resistance levels at RM2520 andRM2538 regions. Traders were advice to hold take profit in the coming trading provided resistance levels were not violated. Trader might consider to hold short position for short term trading as we think CPO price trading might have some small pull back in the coming trading session. As for overall trend, we still view CPO price was riding on a major correction wave before another bull rally comes into picture.