FCPO Commentary on 23/10/09

CPO 3rd month Jan futures contract traded RM42 higher as compare to previous trading sessions to close at RM2210 with a total of 11,485 lots traded in the market. CPO price was mainly holding within price range as major profit taking on crude oil and soybean oil electronic trading despite manage to close strong during overnight trading.

Technically, CPO price seems formed a rising wedge in the hourly chart while attempt to break 80 – day and 100 – day moving average resistance line in the daily chart. Based on our technical view, our opinion suggests CPO price would continue to trade lower provided support levels at RM2154 and RM2110 must not be violated during trading sessions. Traders were advice to hold long position provided support levels were not violated while resistance levels were seen at RM2220 and RM2251 regions.