FCPO Commentary on 30/07/09

CPO 3rd month Oct futures contract close RM27 points lower as compare to previous trading session to close at RM2113 with a total of 9,961 lots traded in the market. CPO opened and trade firm but traded lower in the 2nd trading session as crude oil and soybean oil electronic trading were traded lower during the trading session.

Technically, CPO again challenge and give false break signal at RM2162 resistance regions but traded lower once manage to break down from the rising wedge in the hourly chart. Based on our technical analyst, our opinion suggests CPO would continue traded lower in the coming trading session provided resistance levels at Rm2140 and RM2180 region were not violated. Traders were advice to hold short position while be alert around support levels at RM2090 and RM2063 regions.