FCPO Commentary on 16/06/09

FCPO 3rd month August Futures contract fall RM65 lower to close at RM2400 levels as compare to previous trading session with 11,204 lots traded in the market. CPO price plunge tracking closely on soybean oil and crude oil electronic trading performance.

Technically, CPO price yesterday manage to complete 178.6% and 78.6% Fibonacci projection at RM2384 regions while forms a Doji in the 2 – hourly chart. Based our technical interpretation, we suggest CPO might rebound in the coming trading session provided support levels at RM2380 and RM2350 were not violated in the coming trading session. Traders were advice to take profit on the existing short position while hold long position provided support levels were not violated. Resistance levels were seen at RM2465 and RM2520 regions.