FCPO Commentary on 06/07/09

FCPO 3rd month Sept Futures contract traded unchanged to close at RM2175 levels as compare to previous trading session with 10,915 lots traded in the market. CPO price was traded lower as soybean oil and crude oil overnight trading was closed weak but latter recovered due to heavy profit taking activities over holiday ahead.

Technically, CPO finally reach our projected target around RM2093 region, 50% Fibonacci retrace levels. Based on our technical interpretation, our opinion suggests CPO wound seen temporary bottomed around RM2075 to RM2090 regions. However, despite of immediate trend reversal, we suggest CPO would consolidate short while before a new bull trend is confirmed. Trend trader were advice to slowly collect position in the coming trading session where support seen RM2100 and RM2075. Resistance levels were seen at RM2209 and RM2233 levels.