FCPO Commentary on 29/06/09

FCPO 3rd month Sept Futures contract fall back RM19 lower to close at RM2317 levels as compare to previous trading session with 7,698 lots traded in the market. CPO price was mainly traded sideways with wide trading range due to price spike despite crude oil and soybean oil traded higher during intraday session.

Technically, CPO price still fails to breach 50% Fibonacci retrace level and 80 – day exponential moving average at RM2340 regions in the daily price chart. Based on our technical knowledge, we expect CPO price would plunge in the coming trading session provided resistance levels at RM2350 and RM2326 were not violated. Traders were suggest to hold short position in the coming trading session while be cautious around support levels at RM2298 and RM2231 regions.