FCPO Commentary on 17/11/09

CPO 3rd month Feb futures contract traded RM48 points higher as compare to previous trading sessions to close at RM2336 with a total of 9,604 lots traded in the market. CPO price was traded higher as soybean oil and crude oil electronic trading were traded firm during trading sessions due to favorable export figure release during morning and afternoon sessions.

Technically, CPO price manage to break up daily resistance levels at RM2275 levels while complete minor wave 3 counts at RM2360 at 238.1% Fibonacci resistance levels. Based on our technical view, CPO price seems possible to retrace slightly despite manage to break above resistance trend line provided resistance levels at RM2360 and RM2373 regions. Traders were advice to hold long on dip in the coming trading session around support levels at RM2283 and RM2310 regions.