FCPO Commentary on 20/10/09

CPO 3rd month Jan futures contract traded RM19 higher as compare to previous trading sessions to close at RM2197 with a total of 9,586 lots traded in the market. CPO price was mainly traded sideways after opened higher during 1st trading sessions despite soybean oil electronic trading was traded higher.
Technically, CPO daily price chart seems formed a Doji formation after long consolidation throughout entire trading sessions. Based on our technical analyst, our opinion suggests CPO price would search for support around RM2170 and RM2184 regions in the coming trading sessions before would surge higher. Traders were advice to long on dip in the coming trading session provided support levels at RM2110 were not violated. Resistance levels were seen at RM2220 and RM2251 regions.