FCPO Commentary on 11/06/09

FCPO 3rd month August Futures contract rose RM36 higher to close at RM2501 levels as compare to previous trading session with 10,855 lots traded in the market. CPO price was trade sideways due to contradicting information on crude oil and soybean oil electronic trading surge up while export report figure indicates bearish condition.

Technically, CPO price seems forms a inverted head and shoulder around support region at RM2450 and RM2480 regions. Based our technical knowledge, our opinion suggest that CPO price would likely to test resistance levels at RM2530 and RM2575 regions. However, traders were advice to hold short position provided the resistance levels were not violated while be alert around support levels at RM2450 and RM2400 regions.