FCPO Commentary on 22/06/09

FCPO 3rd month Sept Futures contract fall mildly RM14 lower to close at RM2285 levels as compare to previous trading session with 7,569 lots traded in the market. CPO price was traded lower despite soybean oil and crude oil electronic trading surge up during trading session.

Technically, CPO price traded south to reach target at RM2275 region; 50% Fibonacci projection levels. Based on our technical count, we suggest CPO price still riding on a bear rally but support levels at RM2275 and RM2200 seems holding well against the selling pressure. Traders were advice to hold short position during the trading session while be cautious around resistance levels at RM2300 and RM2354 regions.