FCPO Commentary on 06/10/09

CPO 3rd month Dec futures contract rebound marginally RM5 higher as compare to previous trading sessions to close at RM2042 with a total of 6,777 lots traded in the market. CPO price were traded sideways during trading sessions after being sell down fiercely during last week last trading sessions.

Technically, CPO price seems consolidating within range from RM2030 towards RM2060 regions as 100% Fibonacci support levels seen at RM2040 regions. Based on our technical view, our opinion suggests CPO still doesn’t show any sign of reversal in the 4-hourly price chart while we suggests strong support levels possible to be found around RM1970 and RM1930 regions. However, traders were advice to hold long position in the coming trading sessions if resistance levels at RM2082 and RM2130 were violated during trading sessions.