FCPO Commentary on 23/11/09

CPO 3rd month Feb futures contract surge RM48 points higher as compare to previous trading sessions to close at RM2419 with a total of 8,744 lots traded in the market. CPO price was traded lower during trading session as soybean oil and crude oil were traded firm during overnight trading.

Technically, CPO price surge higher after stand firm above support levels at RM2360 regions; 78.6% Fibonacci support levels. Based on our technical view, CPO price possible just complete minor count wave 5 where RM2415 and RM2421 range is 278.6% Fibonacci resistance levels. our opinion suggests CPO price possible to lower in the coming trading session provided resistance levels at RM2421 and RM2470 were not violated. Traders were still advice to apply long on dip strategy in the coming trading sessions where support levels at RM2327 and RM2306 regions.