FCPO Commentary on 051009

CPO 3rd month Dec futures contract plunge RM79 lower as compare to previous trading sessions to close at RM2036 with a total of 5,744 lots traded in the market. CPO price plunge fierce during last trading hour despite not much of inducement from crude oil and soybean oil price movement.

Technically, CPO price traded south once previous support levels at RM2080 fail to hold against the selling pressure during last trading hours. Based on our technical view, our opinion suggests CPO would likely to continue to trade south if support levels at RM2020 and RM2000 were not holding well against the selling pressure. However, traders were advice to hold long position only if support levels were not violated. Resistance levels were seen at RM2070 and RM2100 regions.