FCPO Commentary on 21/07/09

FCPO 3rd month Oct Futures contract rose RM39 higher to close at RM2162 levels as compare to previous trading session with 7,975 lots traded in the market. CPO price were traded firm as soybean oil and crude oil overnight and electronic trading were traded firm during the trading sessions.

Technically, CPO seems fails to penetrate resistance levels at RM2170, 61.8% Fibonacci retrace levels. Based on our technical studies, our opinion suggestion CPO would trade lower provided resistance levels at RM2180 and RM2222 were not violated. Traders were advice to hold short position in the coming trading session while be cautious around support levels at RM2150 and RM2120 regions.