FCPO Commentary on 04/11/09

CPO 3rd month Jan futures contract traded RM18 lower as compare to previous trading sessions to close at RM2190 with a total of 7,037 lots traded in the market. CPO price was opened higher but retrace lower and consolidate ever since opening due to some profit taking activity as crude oil and soybean oil electronic trading were traded weak despite manage to close firm on overnight trading.

Technically, CPO price retrace towards 50% Fibonacci support levels at RM2187 regions after several attempt to test the support level. Based on our technical view, our opinion suggests CPO price would likely to continue trade higher in the coming trading sessions provided support levels at RM2154 and RM2130 were not violated during trading session. Traders were advice to hold long position applying long on dip strategy in the coming trading session while be cautious around resistance levels at RM2208 and RM2231 regions.