FCPO Commentary on 09/10/09

CPO 3rd month Dec futures contract fall RM47 lower as compare to previous trading sessions to close at RM2030 with a total of 10,108 lots traded in the market. CPO price trade lower before market close for trading after long consolidation around RM2080 regions as crude oil and soybean oil electronic trading were traded weaker during trading session.

Technically, CPO price manage to plunge south during trading after a Doji formation in the hourly chart. Based on our technical view, our opinion suggests CPO price would likely to plunge further lower in the coming trading session where support levels seen at RM2003 and RM1970 regions. Traders were advice to hold short position in the coming trading sessions provided resistance levels at RM2077 and RM2128 must not be violated.