FCPO Commentary on 16/07/09

FCPO 3rd month Sept Futures contract surge RM67 higher to close at RM2103 levels as compare to previous trading session with 8,508 lots traded in the market. CPO surge high during early trading but seen consolidate between RM2120 – RM2100 on the second trading session as crude oil and soybean oil electronic trading were traded flat.

Technically, CPO price seems resisted around 80 – day and 100 – day exponential moving average at RM2117 levels. Based on our technical knowledge, our opinion suggest CPO price would traded lower in the coming trading session provided resistance level at RM2134 and RM2181 were strictly not violated. Traders were advice to hold short position once support levels at RM2095 and RM2040 were affirmed breached during trading sessions.