FCPO Commentary on 19/06/09

FCPO 3rd month Sept Futures contract plunge RM76 lower to close at RM2299 levels as compare to previous trading session with 12,584 lots traded in the market. CPO price was traded lower despite soybean oil and crude oil overnight trading was traded firm.

Technically, CPO price plunge after manage to penetrate previous low support levels at RM2350 regions. Based on our technical analyst wave count, we expect CPO price would continue to trade lower after possible mild rebound in the coming trading session where resistance levels seen at RM2350 and RM2425 regions. traders were advice to hold short position around the resistance levels while be cautious around support levels at RM2276 and RM2242 regions.