FCPO Commentary on 07/09/09

CPO 3rd month Nov futures contract fall RM21 as compare to previous trading sessions to close at RM2197 with a total of 7,349 lots traded in the market. CPO price was traded lower few hours before market closed as crude oil and soybean oil electronic trading were traded lower during trading sessions.

Technically, CPO price manage to rebound 61.8% Fibonacci retrace levels at RM2235 regions before manage to break down from the uptrend channel support levels at RM2225 regions. Based on our technical view, our opinion suggests CPO price would trade lower in the coming trading session provided resistance levels at RM2235 and RM2256 must not be violated during trading sessions. Traders were advice to hold short position in the coming trading session while be cautious around support levels at RM2172 and RM2086.