FCPO Commentary on 04/08/09

CPO 3rd month Oct futures contract surge RM106 points higher as compare to previous trading session to close at RM2295 with a total of 8,612 lots traded in the market. CPO price was trade strong as crude oil and soybean oil were traded firm during overnight and electronic trading sessions.

Technically, CPO price breached all our previous resistances levels at RM2225 and RM2263 regions and daily bar show a strong bullish candlesticks upon closing. Based on our technical analyst, our opinion suggests CPO possible already trend reverse upwards provided support levels at RM2183 and RM2063 were not violated. Traders were advice to hold long position once resistance level at RM2308 was violated. Next resistance levels were seen at RM2350 regions.