FCPO Commentary on 24/06/09

FCPO 3rd month Sept Futures contract surge RM129 higher to close at RM2286 levels as compare to previous trading session with 16,754 lots traded in the market. CPO price surge fiercely despite soybean oil and crude oil were closed weak during overnight trading session as they rebound sharply during intraday trading.

Technically, CPO price forms a bull engulfing formation in the daily price chart with significant volume increment as signal of trend reversal. Based on our technical analyst, we suggest CPO price would temporary resisted around resistance levels at RM2310 and RM2345 regions. traders were advice to hold long position in the coming trading session provided support levels at RM2170 and RM2212 region were not violated.