FCPO Commentary on 26/08/09

CPO 3rd month Nov futures contract close RM20 lower as compare to previous trading sessions to close at RM2355 with a total of 9,931 lots traded in the market. CPO price seems traded lower during trading session as crude oil and soybean oil were traded weak but CPO manage to recover some losses before market ended.

Technically, CPO price manage to rebound 61.8% Fibonacci retrace levels at RM2372 regions and manage to cover overnight gap in the hourly chart and daily chart. Based on our technical view, our opinion suggests CPO would trade lower in the coming trading session provided resistance levels at RM2372 and RM2390 were not violated. Traders were advice to hold short position in the coming trading session while be cautious around support levels at RM2300 and RM2272 regions.