FCPO Commentary on 12/06/09

FCPO 3rd month August Futures contract fall marginally RM16 lower to close at RM2485 levels as compare to previous trading session with 9,484 lots traded in the market. CPO price mainly traded directionless as crude oil and soybean oil overnight and electronic were traded contradicting each other during trading session.

Technically, CPO price seems traded upwards within an uptrend channel trend line in the hourly chart. Based on our technical understanding, we opinion suggest CPO price still riding on the bear market where support levels at RM2460 and RM2400 regions. However, bearish flag formation in the hourly chart would confirm once short term support levels at RM2480 was breached while resistance levels must not be violated. Traders were advice to hold short position in the coming trading session provided resistance levels at RM2525 and RM2575 were not violated.