FCPO Commentary on 17/08/09

CPO 3rd month Oct futures contract plunge RM74 points lower as compare to previous trading sessions to close at RM2441 with a total of 12,274 lots traded in the market. CPO price were traded wild during trading session as crude oil and soybean oil were traded firm against selling pressure while heavy profit taking activities for weekend ahead.

Technically, CPO price starts to retrace towards support levels at RM2410 but manage to rebound 78.6% Fibonacci retrace levels at RM2500. Based on our technical interpretation, our opinion suggests CPO would trade lower in the coming trading session where support levels seen at RM2433 and RM2390 regions. Traders were advice to hold short position while be cautious around resistance levels at RM2490 and RM2520 regions