FCPO Commentary on 12/10/09

CPO 3rd month Dec futures contract surge RM55 higher as compare to previous trading sessions to close at RM2085 with a total of 9,010 lots traded in the market. CPO price was traded higher during last trading hours after long consolidation around RM2055 and RM2070 range despite soybean oil and crude oil electronic trading were traded red during trading session.

Technically, CPO price seems possible to break out from the falling wedge that formed in the daily chart and hourly chart. However, further confirmation needed to decide if CPO price was indeed breakout from range trading. Based on our technical view, our opinion suggest CPO price would trade higher in the coming trading sessions provided resistance levels at RM2087 and RM2130 were unable to resist the buying interest. Traders were advice to hold long position in the coming trading sessions while extra cautious around support levels at RM2057 and RM2030 regions.