FCPO Commentary on 10/06/09

FCPO 3rd month August Futures contract close marginally RM5 higher to close at RM2465 levels as compare to previous trading session with 10,314 lots traded in the market. CPO price was mainly traded sideways during the trading session as crude oil and soybean oil electronic trading was traded without main direction.

Technically, CPO price tried to search for support level during previous trading after manage to rebound 50% Fibonacci retrace levels at RM2504 regions. Based on our technical analyst, our opinion suggest that CPO price would continue to trade lower in the coming trading session where support seen at RM2420 and RM2400 regions. Traders were advice to take profit on the existing short position as rebound activities might anticipate in the coming activities. Resistances levels were seen at RM2500 and RM2540 regions.