FCPO Commentary on 13/10/09

CPO 3rd month Dec futures contract surge RM62 higher as compare to previous trading sessions to close at RM2147 with a total of 11,693 lots traded in the market. CPO price was traded most of the time as soybean oil and crude oil electronic trading were traded strong during electronic trading as well as overnight trading sessions.

Technically, CPO price seems manage to break out from the falling wedge that formed in the daily chart and seems stopped around 78.6% Fibonacci resistance levels. Based on our technical view, our opinion suggests CPO price would remain intact on bull rally provided support levels at RM2100 and RM2070 must not be violated during trading sessions. Traders were advice to long on dip if CPO price didn’t manage to penetrate resistance levels at RM2154 and RM2187 in the coming trading sessions.