FCPO Commentary on 10/08/09

FCPO Oct Futures contract closed RM16 higher at RM2341 as compare to previous trading session with a total of 7,124 lots traded in the market. CPO price was trade sideways on most of the trading period but surge up just few minutes before market closed despite not much movement in crude oil and soybean oil electronic trading.

Technically, CPO price manage to burst up after long consolidation in descending triangle formation with support level at RM2306 hit twice. Based on our technical view, our opinion suggest CPO still seen uncertain on the trend direction as critical resistance levels at RM2350 and RM2380 were not violated while support levels at RM2300 and RM2170 were not challenged. However, traders were advice to hold long position once resistance levels were breach during trading session.