FCPO Commentary on 27/07/09

FCPO 3rd month Oct Futures contract rose RM22 higher to close at RM2122 levels as compare to previous trading session with 7,858 lots traded in the market. CPO price rebound strong after dipped low at RM2060 regions in the early sessions.

Technically, CPO price completed objective price at RM2062 levels at 161.8% Fibonacci projection levels and expected complete rebound levels at RM2134, 78.6% Fibonacci retrace levels. Based on our technical analyst, our opinion suggests CPO price would trade lower provided resistance levels at RM2140 and RM2180 were not violated. Traders were suggest to hold short position provided resistance levels were not breached while be extra alert support levels at RM2090 and RM2060 regions.