FCPO Commentary on 09/06/09

FCPO 3rd month August Futures contract plunge RM62 lower to close at RM2458 levels as compare to previous trading session with 10,222 lots traded in the market. CPO price was traded lower during trading session as soybean oil and crude oil electronic and overnight trading were trade weak.

Technically, CPO price starts to plunge lower after manage to consolidate 23.6% Fibonacci rebound levels and forms a rising flag in the 15 min price chart. Based on our technical analyst, our opinion that CPO price would trade lower in the coming trading session where resistance levels at RM2532 and RM2620 must strictly not to be violated. Traders were advice to hold short position in the coming trading session while be cautious around support levels at RM2400 and RM2350 regions.