FCPO Commentary on 06/08/09

CPO 3rd month Oct futures contract close RM10 points lower as compare to previous trading session to close at RM2325 with a total of 11,408 lots traded in the market. CPO price were traded towards high side after opened lower around RM2300 levels despite soybean oil and crude oil electronic trading were traded weak.

Technically, CPO price manage to reach 100% Fibonacci projection support levels at RM2280 regions and manage to rebound 78.6% Fibonacci retrace levels at RM2340 regions. Based on our technical interpretation, our opinion suggests CPO currently is very critical for trend reversal point as resistance levels at RM2340 and RM2388 must not be breached in order for bear market to intact while support levels at RM2300 and RM 2170 was critical support levels for bull market to remain intact. Traders were advice to hold on entry until further confirmation on trend direction.