FCPO Commentary on 22/10/09

CPO 3rd month Jan futures contract traded RM12 lower as compare to previous trading sessions to close at RM2168 with a total of 9,415 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 hourly price seems consolidation pattern was form in the effort to test support levels at RM2154; 78.6% Fibonacci support levels. Based on our technical view, our opinion suggests CPO price would trade higher in the coming trading sessions provided support levels at RM2154 and RM2138 were not violated during trading sessions. Traders were advice to hold long position in the coming trading sessions but to ensure not violation on support levels. Resistance levels were seen at RM2175 and RM2200 regions.