FCPO Commentary on 02/08/09

CPO 3rd month Oct futures contract close RM44 points higher as compare to previous trading session to close at RM2189 with a total of 12,690 lots traded in the market. CPO price was traded higher in earlier trading session but traded south in 2nd trading session due to strong profit taking activities over long holiday.

Technically, CPO price manage to rebound exit 78.6% Fibonacci resistance levels at RM2225 regions. Based on our technical interpretation, our opinion suggests CPO price would encounter strong resistance levels at RM2225 and RM2262 regions. Traders were advice to hold short position provided resistance levels were not violated while be cautious around support levels at RM2180 and RM2130 levels.