FCPO Commentary on 28/07/09

CPO 3rd month Oct futures contract close RM24 points lower as compare to previous trading session to close at RM2098 with a total of 6,514 lots traded in the coming market. CPO price were traded lower due to weak soybean oil overnight and electronic trading despite CPO sudden spike up during last week trading.
Technically, CPO price seems temporary topped around 78.6% Fibonacci retrace level at RM2134 regions but further confirmation only if manage to breach support levels at RM2090 and RM2063 regions. Based on our technical analyst, our opinion suggests CPO price still riding on a bear market with short term support level seen at RM2060 and RM2000. Traders were advice to hold short position in the coming trading session provided resistance levels at RM2116 and RM2134 were not violated.