FCPO Commentary on 15/07/09

FCPO 3rd month Sept Futures contract surge RM46 higher to close at RM2036 levels as compare to previous trading session with 6,771 lots traded in the market. CPO price were traded higher as soybean oil and crude oil were traded firm in overnight and electronic trading.

Technically, CPO price seem manage to rebound 50% Fibonacci rebound levels at RM2073 regions after seem temporary bottom at RM1960 regions. Based on our technical analyst, our opinion suggest CPO price show some bullish indication that CPO is about reach its floor zone. However, it’s still unclear of any trend reversal signal. For short term trading, traders were still advice to hold short position cautiously around resistance level at RM2085 and RM2100 regions while support seen at RM2003 and RM1980 regions.