FCPO Daily Commentary for 17th May 2010

FCPO July Futures contract traded RM15 lower as compare to previous trading sessions to close at RM2457 with a total of 7,671 lots traded in the market. FCPO struggles to rebound higher after opened lower due to weak crude oil and soybean oil overnight and electronic trading.
FCPO price plunge lower to test previous support low at RM2455 after attempt to penetrate resistance levels at RM2473; 23.6% Fibonacci resistance level, failed. Technically, it’s possible that FCPO trading price would rebound higher provided support level at RM2444 and RM2430 were not violated in the coming trading sessions. Resistance levels were expected around RM2486 and RM2505, 50% and 78.6% Fibonacci resistance levels. Please be alert that failure to hold above support levels at RM2455 shall indicates market would be trading south direction in the medium term trading.