FCPO Commentary on 27/08/09

CPO 3rd month Nov futures contract close marginally RM2 higher as compare to previous trading sessions to close at RM2357 with a total of 9,427 lots traded in the market. CPO price was traded wild to find support and resistance regions as crude oil and soybean oil electronic trading were traded both directions.

Technically, CPO price surprised us by testing higher resistance levels at 78.6% at RM2385 regions despite previously manage to hit 61.8% Fibonacci levels at RM2362 regions. Based on our technical point of view, our opinion suggests CPO price still riding a bearish phase where support levels seen at RM2300 and RM2270 regions. Traders were advice to hold short position in the coming trading session but be cautious around resistance levels at RM2385 and RM2411 regions.