FCPO Commentary on 03/09/09

CPO 3rd month Nov futures contract plunge another RM58 as compare to previous trading sessions to close at RM2245 with a total of 11,213 lots traded in the market. CPO price was traded weak as crude oil and soybean oil were trade weak during overnight and electronic trading.

Technically, CPO price manage to penetrate previous low at RM2234 levels but manage to complete target at 61.8% at RM2224 in the hourly chart. Based on our count, we suggests CPO price would likely rebound in the coming trading session provided support levels at RM2220 and RM2200 were not violated during trading session. Traders were advice to hold long position with extra cautious around resistance levels at RM2230 and RM2334 regions.