FCPO Commentary on 12/11/09

CPO 3rd month Jan futures contract traded marginally RM8 point lower as compare to previous trading sessions to close at RM2234 with a total of 3,349 lots traded in the market. CPO price was traded sideways during trading session due to mix reaction on soybean oil and crude oil trading during overnight trading and electronic trading.

Technically, CPO price rested on the uptrend support channel line which support seen at RM2230 and RM2215 regions. Based on our technical view, CPO price is possible complete correction wave at 78.6% Fibonacci support levels at RM2230 regions while next nearest support at RM2215 regions. Our opinion suggests CPO price would continue riding on a bull trend strictly provided support levels at RM2215 and RM2200 were not violated during trading sessions. Traders were advice to hold long position provided CPO price were well hold against the selling pressure while be cautious around resistance levels at RM2253 and RM2275 regions.