FCPO Commentary on 08/09/09

CPO 3rd month Nov futures contract fall another RM67 as compare to previous trading sessions to close at RM2130 with a total of 9,668 lots traded in the market. CPO price was traded lower despite soybean oil electronic trading was closed for trading due to Labor Day.

Technically, CPO price manage to found new support at RM2128 regions; 323.6% and 78.6% Fibonacci projection figure to complete wave 3 formations. Based on our technical view, our opinion suggests CPO price would rebound in the coming trading session provided support levels at RM2120 and RM2087 were not violated during trading session as there were 3 gaps appeared in the daily price chart. Traders were advice to hold long position in the coming trading sessions while be cautious around resistance levels at RM2235 and RM2256 regions.