FCPO Commentary on 05/08/09

CPO 3rd month Oct futures contract marginally close RM9 points higher as compare to previous trading session to close at RM2304 with a total of 11,204 lots traded in the market. CPO price was traded lower despite opened higher due to soybean oil and crude oil strong overnight trading.

Technically, CPO seems fails breach to previous high resistance levels at RM2349 regions during trading session while manage to reach 123.6% Fibonacci projection levels at RM2335 regions. Based on our technical analyst, our opinion suggests CPO price might retrace slightly where support seen at RM2237 and RM2170 regions. Traders were advice to hold short position provided resistance levels at RM2330 and RM2350 were not violated.