FCPO Commentary on 24/07/09

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 seems manage to rebound 50% Fibonacci projection levels at RM2121 regions but traded sideways during trading session. Based on our technical analyst, our opinion suggest CPO price would traded lower in the coming trading session provided resistance levels at RM2129 and RM2143 were not violated. Traders were advice to hold short position in the coming trading session while be alert around support levels at RM2087 and 2070 regions.