FCPO Commentary on 24/11/09

CPO 3rd month Feb futures contract surge RM67 points higher as compare to previous trading sessions to close at RM2486 with a total of 9,624 lots traded in the market. CPO price was traded higher during trading session as soybean oil and crude oil were trade strong during electronic trading sessions.

Technically, CPO price surge higher after manage to penetrate previous resistance levels at RM2415 regions and continue to test coming resistance levels at RM2500 regions. Based on our technical view, CPO price seems extending wave count where resistance levels seen at RM2505 and RM2543 while correction phase were expect to come soon. However, after long consideration, we opinion suggests CPO price remain intact strongly on bull trend without much speculation to retrace. Traders were advice to apply long on average lower strategy in the coming trading sessions around support levels at RM2431 and RM2360 regions.