FCPO Commentary on 03/11/09

CPO 3rd month Jan futures contract traded unchanged as compare to previous trading sessions to close at RM2208 with a total of 9,389 lots traded in the market. CPO price recovered after opened lower trading in the morning sessions as crude oil and soybean oil were traded weak during overnight trading but manage to rebound during electronic trading which directly affects CPO price movement.

Technically, CPO price manage to retrace towards 50% Fibonacci support levels at RM2160 regions despite manage to close highest on last Friday trading sessions. Based on our technical view, our opinion suggests CPO price would trade higher in the coming trading session as CPO price currently riding on wave count of 3 in the hourly chart. Traders were advice to hold long position provided support levels at RM2160 and RM2130 were not violated during trading sessions. Resistance levels were seen at RM2231 and RM2260 regions.