FCPO Commentary on 05/06/09

FCPO 3rd month August Futures contract fall marginally RM6 lower to close at RM2569 levels as compare to previous trading session with 7,837 lots traded in the market. CPO price rebound as electronic trading surge high during the trading session despite opened lower as overnight crude oil and soybean oil were close weak.

Technically, CPO seems starts to rebound 61.8% Fibonacci rebound level after manage to complete 300% Fibonacci projection levels at RM2525. Based on our technical, we suggest CPO price still riding on bear rally provided resistance levels at RM2600 and RM2640 were not violated. Traders were advice to hold short position in the coming trading session while be cautious around support levels at RM2525 and RM2480 regions.