FCPO Commentary on 10/11/09

CPO 3rd month Jan futures contract traded RM20 higher as compare to previous trading sessions to close at RM2266 with a total of 5,714 lots traded in the market. CPO price was traded firm as crude oil and soybean oil electronic trading was traded firm during electronic trading while they were ended weak during last week session.

Technically, CPO price surge after holding well above support levels at RM2217 regions; 61.8% Fibonacci support levels. Based on our technical view, our opinion suggests CPO price would trade higher in the coming trading sessions provided support levels at RM2215 and RM2230 were not violated during trading sessions. Traders were advice to hold long position while be cautious around resistance levels at RM2287 and RM2333 regions.