FCPO Commentary on 19/11/09

CPO 3rd month Feb futures contract rose RM58 points higher as compare to previous trading sessions to close at RM2400 with a total of 12,307 lots traded in the market. CPO price was traded higher during trading sessions as soybean oil and crude oil were traded strong during overnight and electronic trading during trading sessions.

Technically, CPO price continue surge higher after consolidate around support levels at RM2330. Based on our technical view, CPO price seems complete 61.8% and 261.8% Fibonacci resistance levels at RM2415 levels. Based on our opinion, CPO price seems likely to trade lower towards RM2342 and 2300 support levels. Traders were advice to apply long on dip strategy in the coming trading session while be cautious around resistance levels at RM2415 and RM2450 regions.