FCPO Commentary on 29/05/09

FCPO 3rd month August Futures contract close unchanged at RM2505 levels as compare to previous trading session with 9,456 lots traded in the market. CPO price was traded wild as crude oil and soybean oil electronic trading was traded both directions during trading session.

Technically, CPO price seems traded sideways throughout entire trading session despite was traded within large range. Based upon our technical view, we suggest that CPO price might continue to rebound in the coming trading session with resistance levels seen at RM2577 and RM2627; both 50% and 61.8% Fibonacci retracement respectively. However, traders were advice to hold short position in the coming as medium term trend still riding on bear rally.