FCPO Commentary on 14/08/09

CPO 3rd month Oct futures contract surge RM55 points higher as compare to previous trading sessions to close at RM2515 with a total of 11,399 lots traded in the market. CPO price were traded higher as crude oil and soybean oil were trade higher during electronic trading session.

Technically, CPO price manage to complete 61.8% Fibonacci projection levels at RM2517 regions after long consolidation around RM2465 and RM2450 regions. Based on our technically interpretation, our technical opinion suggest CPO would likely to retrace in the next trading session where support seen at RM2389 and RM2300 levels while short term supports seen at RM2460 and RM2410 levels. Traders were advice to hold short position in the coming trading session provided resistance levels at RM2520 and RM2583 were not violated.