FCPO Commentary on 30/10/09

CPO 3rd month Jan futures contract rose RM37 higher as compare to previous trading sessions to close at RM2189 with a total of 10,250 lots traded in the market. CPO price traded higher after long consolidate within RM2130 and RM2140 regions during trading sessions.

Technically, CPO price surge fierce after manage to find support at 50% Fibonacci support levels at RM2130 regions while further confirm when CPO price manage to penetrate previous high resistance levels at RM2171 regions. Based on our technical view, our opinion suggests CPO price seems finish correction phase and resume to ride on bull again provided support levels at RM2130 and RM2103 were not violated during trading sessions, traders were advice to hold long position in the coming trading sessions while be cautious around resistance levels at RM2200 and RM2250 regions.