FCPO Commentary on 31/07/09

CPO 3rd month Oct futures contract close RM32 points higher as compare to previous trading session to close at RM2145 with a total of 7,581 lots traded in the market. CPO price was traded higher as soybean oil and crude oil electronic were traded strong during trading hours despite crude oil was plunge during overnight closing.
Technically, to our surprise, CPO price yesterday challenge resistance price at RM2140 region again and closed on RM2145 levels. Based our technical interpretations, our opinion suggests CPO price currently at the edge of deciding on CPO current trend as RM2180 was seen at critical resistance level in order for this bear market to stay intact. Traders were advice to only short position provided resistance levels at RM2162 and RM2180 were not violated. Support levels were seen at RM2120 and RM2090.