FCPO Commentary on 21/08/09

CPO 3rd month Oct futures contract close marginal RM2 higher as compare to previous trading sessions to close at RM2301 with a total of 14,644 lots traded in the market. Wild trading days for CPO price trading as crude oil and soybean oil electronic trading plunge despite were closed firm during overnight trading.

Technically, CPO price manage to rebound 78.6% Fibonacci rebound level at RM2350 regions and manage to break down from lower trend line around RM2340 levels. Based on our technical analyst, our opinion suggests CPO price would trade lower heading support levels at RM2372 and RM2342 regions. Traders were advice to hold short position in the coming trading session provided resistance levels at RM2330 and RM2350 were not violated.