FCPO Commentary on 10/07/09

FCPO 3rd month Sept Futures contract rose RM45 higher to close at RM2047 levels as compare to previous trading session with 7,930 lots traded in the market. CPO traded higher due to firm electronic trading session for soybean oil and crude oil despite was closed weak during overnight session.

Technically, CPO seems temporary support around RM1980; 150% Fibonacci projection levels. Based on our technical interpretation, our opinion suggests CPO would trade lower in the coming trading session provided CPO instant resistance levels seen at RM2051; 61.8% Fibonacci retrace level and RM2100. Traders were advice to hold short position if resistance levels were not violated. Supports were seen at RM2004 and RM1980 regions.