FCPO Commentary on 25/08/09

CPO 3rd month Nov futures contract close RM30 higher as compare to previous trading sessions to close at RM2375 with a total of 12,761 lots traded in the market. CPO price was mainly traded within narrow range as crude oil and soybean oil electronic were not actively traded while CPO awaiting for coming export figure.

Technically, CPO formed top side consolidation around RM2400 and RM2385 regions before manage to break lower to test 1st support level at RM2363; 23.6% Fibonacci retrace levels. Based on our technical view, our opinion suggest CPO price would retrace to form wave B in the coming trading session with support levels seen at RM2337 and RM2298. Traders were advice to hold short position in the coming trading session provided resistance levels at RM2411 and RM2450 were not violated in the coming trading session.