FCPO Commentary on 11/09/09

CPO 3rd month Nov futures contract rose marginally RM5 higher as compare to previous trading sessions to close at RM2184 with a total of 12,256 lots traded in the market. CPO price was traded wild to find lower support after manage to challenge new height during trading session despite soybean oil electronic trading session were traded within tight range. Sharp fall in CPO price was mainly due to MPOB report that leads to bearish interpretation.

Technically, CPO price starts to traded lower after manage to meet 78.6% Fibonacci projection at RM2240 regions and followed by challenge support levels at RM2150; 78.6% Fibonacci retrace levels despite manage to false break lower towards RM2135 regions. Based on our technical interpretation, our opinion suggests CPO price would trade higher in the coming trading to challenge next height at RM2285 and RM2330, next resistance levels. Traders were advice to hold long position in the coming trading session provided support levels at RM2150 and RM2135 were not violated during trading sessions.