FCPO Commentary on 06/08/09

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 loss buying strength after manage to reach new high at RM2357 levels

Technically, CPO managed to breach previous high resistance levels at RM2349 levels but manage to close around RM2346 regions on hourly chart. Based on our technical view, our opinion suggests CPO is possible reverse to uptrend. However, further confirmation needed from the coming price traded. On short term basis, traders were advice to hold long on pull back provided support levels at RM2244 and RM2170 were not violated while resistance levels were seen at 2350 and RM 2388 regions.