FCPO Commentary on 13/11/09

CPO 3rd month Jan futures contract traded RM10 points higher as compare to previous trading sessions to close at RM2245 with a total of 7,795 lots traded in the market. CPO price retrace lower after traded higher during earlier session as soybean oil and crude oil were trade firm during overnight trading but fall back during electronic trading.

Technically, CPO price rested on support levels at RM2244; 61.8% Fibonacci support levels after attempt to complete 38.1% Fibonacci resistance levels at RM2276 regions. Based on technical view, CPO price practice 2nd attempt to breach daily resistance levels at RM2270 regions but failed hence pull back towards 61.8% Fibonacci support levels at RM2244 regions. Our opinion suggests CPO price would likely to trade higher in the coming trading sessions provided support levels at RM2236 and RM2215 were not breach during trading session. Traders were advice to hold long position in the coming trading session while be cautious around resistance levels at RM2275 and RM2330 regions.