FCPO Commentary on 08/10/09

CPO 3rd month Dec futures contract rebound another RM15 higher as compare to previous trading sessions to close at RM2077 with a total of 8,157 lots traded in the market. CPO price were traded higher during earlier sessions due to crude oil and soybean oil overnight and electronic strong trading but soften in 2nd trading sessions possible due to profit taking activities.

Technically, CPO daily price chart shows a Doji formation while topped below a downwards trend line; gap was seen covered at price of RM2068 regions. Based on technical interpretation, our opinion suggests CPO price would likely trading lower in the coming trading sessions where supports were seen at RM2068 and RM2003 regions. However, traders were advice to only hold short position provided support levels were being penetrated during trading session instead of attempt to short on rebound activities where resistance were seen at RM2104 and RM2130 regions.