FCPO Commentary on 18/08/09

CPO 3rd month Oct futures contract plunge RM102 points lower as compare to previous trading sessions to close at RM2335 with a total of 12,582 lots traded in the market. CPO price were traded weak as crude oil and soybean oil were traded plunge during trading session.

Technically, CPO plunge after breach previous support levels at RM2424 but temporary holding above 80 – day and 100 – day exponential moving average in the 15 min price chart. Based on our technical analyst, our opinion suggests CPO price is possible to rebound in the coming trading session after met projection at RM2335, 178.6% Fibonacci projection. However, traders were advice to hold short position for trend trading provided resistance levels at RM2440 and RM2470 were not violated while be alert around support levels at RM2300 and RM2250 regions.