FCPO Commentary on 15/10/09

CPO 3rd month Dec futures contract traded marginally RM3 higher as compare to previous trading sessions to close at RM2160 with a total of 9,340 lots traded in the market. CPO price mainly traded within tight range expect last hourly trading hour CPO manage to swing upside and downside heavily possibly due to stop triggered and profit taking activities.

Technically, CPO price was manage to penetrate 178.6% Fibonacci resistance levels at RM2177 but stop at RM2195 regions; 200% Fibonacci resistance levels. Based on our technical analyst, high at RM2196 indicates first confirmation on bull trend. However, bull trend would only remain intact provided support levels at RM2109 and RM2090 were not violated during trading session. Traders were advice to long on dip in the coming trading session while be alert around resistance levels at RM2210 and RM2240 regions.