FCPO Commentary on 28/10/09

CPO 3rd month Jan futures contract plunge RM48 lower as compare to previous trading sessions to close at RM2170 with a total of 10,570 lots traded in the market. CPO price was traded lower as soybean oil and crude oil electronic trading were traded weak while overnight trading were also closed weak.

Technically, CPO price continue to fall south after break from rising wedge in the daily chart after only manage to rebound 23.6% Fibonacci resistance level at RM2196 regions. Based on our technical view, our opinion suggests CPO price would continue to trade lower in the coming trading sessions provided resistance levels at RM2180 and RM2200 must not be violated. Traders were advice to short position in the coming trading sessions while be cautious around support levels at RM2131 and RM2103.