FCPO Commentary on 22/07/09

FCPO 3rd month Oct Futures contract fall mildly RM17 lower to close at RM2143 levels as compare to previous trading session with 8,715 lots traded in the market. CPO price seem traded sideways through entire trading session despite crude oil and soybean traded weak during electronic trading session.

Technically, several attempts to test support at RM2120 levels were spotted but support levels seems temporary holding well against the selling pressure. Based on our technical wave count, our opinion suggests CPO currently seems supported above RM2120 and RM2070 regions. Failure to hold above the support levels shall indicate great selling pressure. Traders were advice to hold short position once support levels were violated while be cautious around resistance levels at RM2162 and RM2185 regions.