FCPO Commentary on 13/08/09

FCPO Oct Futures contract closed RM15 lower at RM2450 as compare to previous trading session with a total of 9,685 lots traded in the market. CPO price were traded wide range as influence by crude oil and soybean oil electronic trading.

Technically, CPO opened high but manages to temporary supported above support levels at RM2400 region. Based on our technical point of view, our opinion suggest CPO price was slightly overbought after traded higher for 5 consecutive trading days as shown from the stochastic and RSI. We suggestion CPO might pull slightly in the coming trading session where support levels were seen at RM2370 and RM2290 regions. Traders were advice to hold short position for short term trading while be cautious around resistances levels at RM2473 and RM2520 regions.