FCPO Commentary on 18/11/09

CPO 3rd month Feb futures contract traded marginally RM6 points higher as compare to previous trading sessions to close at RM2342 with a total of 8,400 lots traded in the market. CPO price was open higher but traded lower towards sideways during some profit taking activities due to heavy buy up during last trading sessions as soybean oil and crude oil were closed firm during overnight trading.

Technically, CPO price formed irregular correction pattern and seems temporary rest on 23.6% Fibonacci support levels at RM2330 regions. Based on our technical view, CPO price would likely to trade higher in the coming trading session after several attempts to breach support levels at RM2330 failed. Our opinion suggests CPO price would trade higher provided support levels at RM2330 and RM2300 were not violated during trading sessions. Traders were advice to hold long position while be cautious around resistance levels at RM2381 and RM2415 regions.