FCPO Commentary on 02/09/09

CPO 3rd month Nov futures contract lose RM67 as compare to previous trading sessions to close at RM2303 with a total of 10,203 lots traded in the market. CPO price was traded lower as crude oil and soybean oil overnight were traded weak during overnight trading session.

Technically, CPO price temporary supported above 61.8% Fibonacci retrace levels at RM2298 level while manage to rebound 38.1% Fibonacci retrace levels at RM2327 regions. Based on our technical point of view, our opinion suggests CPO is possible to test support levels at RM2298 and RM2272 provided resistance levels at RM2335 and RM2357 were not violated. Traders were advice to hold short position but be cautious as bear rally might end in the coming trading sessions.