FCPO Commentary on 23/07/09

FCPO 3rd month Oct Futures contract plunge RM59 lower to close at RM2084 levels as compare to previous trading session with 10,878 lots traded in the market. CPO price plunge since market open for trading as soybean oil and crude oil were traded lower during electronic trading.

Technically, CPO plunged soon after previous support levels at RM2120 were penetrated during trading session. However, CPO price seems temporary support above 61.8% Fibonacci retrace level at RM2180 regions. Based on our technical analyst, our opinion suggests CPO have possibility to rebound in the coming trading session where crucial resistance levels at RM2121 and RM2150 must not be violated. However, traders were advice to hold short position as CPO still seen riding on bear rally provided resistance levels were not violated. Support levels seen at RM2070 and RM2020.