FCPO Commentary on 16/10/09

CPO 3rd month Dec futures contract plunge RM50 lower as compare to previous trading sessions to close at RM2110 with a total of 7,272 lots traded in the market. CPO price was traded south despite soybean oil and crude oil overnight trading were traded firm during overnight trading but loss strength during electronic trading session.

Technically, CPO price plunge after manage to rebound 50% Fibonacci resistance levels at RM2171. Based on our technical view, our opinion suggests CPO is possible to reach bottom around support levels at RM2100 and RM2089 regions. Bull trend were affirm to remain intact provided support levels at RM2089 were not violated. Traders were advice to hold long position in the coming trading sessions while be cautious around resistance levels at RM2130 and RM2150 regions.