FCPO Commentary on 17/09/09

CPO 3rd month Dec futures contract rose RM91 higher as compare to previous trading sessions to close at RM2181 with a total of 13,761 lots traded in the market. CPO price seems trading strong during trading hours as overnight crude oil and soybean oil traded firm despite were traded weak during electronic trading sessions.

Technically, CPO price surge upwards during trading session and manage to rest around 78.6% Fibonacci retrace levels at RM2180 regions. Based on our technical view, our opinion suggests CPO price would only traded high provided buying interest must surpass selling pressure above resistance levels at RM2180 and RM2205 regions. Traders were advice to hold long position around the support levels at RM2070 and RM2044 regions if CPO price fails to penetrate current resistance levels during trading sessions.