FCPO Commentary on 10/09/09

CPO 3rd month Nov futures contract fall RM31 as compare to previous trading sessions to close at RM2179 with a total of 10,963 lots traded in the market. CPO price was traded lower as crude oil and soybean oil were traded lower during electronic despite were closed firm during overnight trading sessions. As addition, traders were being cautious due to MPOB report that to be release tomorrow.

Technically, CPO price seems complete 178.6% and 61.8% Fibonacci projection levels at RM2217 region while 50% Fibonacci support levels at RM2170 was tested during trading sessions. Based on our technical view, our opinion suggests CPO price would rebound further higher in the coming trading session where resistance levels were seen at RM2285 and RM2320 regions. Traders were advice to hold long position in the coming trading session provided support levels at RM2170 and RM2144 must not be violated.