Monday, October 26, 2009

FCPO Commentary on 27/10/09


CPO 3rd month Jan futures contract traded RM20 lower as compare to previous trading sessions to close at RM2218 with a total of 5,863 lots traded in the market. CPO price was traded lower despite export figure show favorable result on demand as compare to previous month. Soybean oil and crude oil electronic trading were traded mix during trading session.

Technically, CPO price seems break down from the rising wedge in the hourly chart and manage to reach target at 161.8% Fibonacci support levels at RM2105 regions. Based on our technical view, our opinion suggests CPO price would continue to trade lower in the coming trading session provided resistance levels at RM2227 and RM2240 were not violated during trading sessions. Traders were advice to hold short position in the coming trading session while be cautious around support levels at RM2190 and RM2160 regions.

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