FCPO Commentary on 280909

CPO 3rd month Dec futures contract traded RM71 higher as compare to previous trading sessions to close at RM2186 with a total of 7,083 lots traded in the market. CPO price traded higher during trading session despite not much encouragement from crude oil and soybean oil electronic trading while export figure were seems neutral instead of bullish report.

Technically, CPO price were surge upwards after manage to retrace lower towards 61.8% Fibonacci retrace levels at RM2106 regions before to surge up to complete wave 3 wave RM2182 at 150% Fibonacci projection levels. Based on our technical view, our opinion suggests CPO price would likely to retrace lower in the coming trading towards support levels at RM2146 and RM2123; both were 50% and 78.6% Fibonacci retracement levels. Traders were advice to hold long position in the coming trading session provided support levels were not violated at any moment. Resistance levels were seen at RM2205 and RM2230 regions.